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Private Company accounting simplification - Applying Credit Losses Guidance

  • 1.  Private Company accounting simplification - Applying Credit Losses Guidance

    Posted 08-04-2025 11:07 AM

    On July 30, 2025, the FASB issued Accounting Standards Update (ASU) 2025-05 Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets for Private Companies and Certain Not-for-Profit Entities.

    The new guidance, which is optional, addresses challenges faced by stakeholders when applying Topic 326, Financial Instruments-Credit Losses, to current accounts receivable and current contract assets arising from transactions accounted for under Topic 606, Revenue from Contracts with Customers. The Private Company Council (PCC) initiated standard-setting activity in response to feedback from private company stakeholders.

    Thank you to the IMA Small Business Shared Interest Group members who provided feedback on this project! 



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    Jenifer Wyss
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  • 2.  RE: Private Company accounting simplification - Applying Credit Losses Guidance

    Posted 08-12-2025 10:35 AM

    Thank you for sharing Jenifer!  I know our members will appreciate the new practical expedients that are available for private companies.  Big thanks to PCC for listening to the needs of small businesses.



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    Amanda Bernard CMA,CPA,CFE
    Director/Manager
    Douglassville PA
    United States
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