ASC 326-10

Overall

326 Financial Instruments—Credit Losses

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Source downloaded: 2026-09-09T23:49:14.132Z.Record version d35495ceaae9. Effective date must be checked in the source.

In brief

IntermediateFinancial instruments Impairment Transition and effective dates

ASC 326-10 is the Overall subtopic of the credit losses Topic: it states the Topic's purpose (how an entity measures credit losses on financial instruments), identifies its three subtopics (Overall; Measured at Amortized Cost; Available-for-Sale Debt Securities), and applies to all entities. Its substantive content today is largely scope plus the transition/effective-date paragraphs in Section 65 for recent ASUs, since the CECL-adoption transition paragraphs from ASU 2016-13 and related updates were superseded on 06/21/2024 once the transition period ended.

Key points (7)

Topic 326 provides guidance on how an entity should measure credit losses on financial instruments and comprises the Overall, Amortized Cost, and Available-for-Sale Debt Securities subtopics (326-10-05-1; 326-10-05-2).
The guidance in Subtopic 326-10 applies to all entities (326-10-15-1).
The original CECL transition paragraphs tied to ASUs 2016-13, 2018-19, 2019-04, 2019-05, 2019-10, 2019-11, 2020-03, and 2022-02 were superseded on 06/21/2024 after the end of their transition periods (326-10-65-1 through 65-5).
ASU 2025-05 (accounts receivable and contract assets) is effective for annual periods beginning after December 15, 2025, and interim periods within those annual periods, with early adoption permitted; an interim adopter applies it as of the beginning of that annual period (326-10-65-6(a)-(b)).
ASU 2025-05 is applied prospectively to estimates of expected credit losses on asset balances described in 326-20-30-10A performed after the date of adoption, and non-public business entities electing the practical expedient after the effective date need not perform a preferability assessment under 250-10-45-2 (326-10-65-6(c)-(d)).
ASU 2025-08 (purchased loans) is effective for annual periods beginning after December 15, 2026, and interim periods within those annual periods, with early adoption permitted (326-10-65-7(a)-(b)).
ASU 2025-08 is applied prospectively to loans acquired on or after the date of initial application (326-10-65-7(c)).

For students. Students often look to 326-10 for the CECL measurement rules, but the Overall subtopic only supplies scope and transition dates — the operative measurement guidance lives in 326-20 (amortized cost) and 326-30 (available-for-sale debt securities). Note also that the ASU 2016-13 transition paragraphs no longer exist, so the live Section 65 content concerns only the 2025 amendments.

credit losses current expected credit losses scope effective dates transition method prospective application practical expedient purchased loans

Machine-generated study aid for ASC 326-10. Check the source paragraphs below.

326-10-00Status

Source downloaded: 2026-09-09T23:48:58.995Z.Record version 4814086b3076. Effective date must be checked in the source.

326-10-00-1

The following table identifies the changes made to this Subtopic.

Paragraph	Action	Accounting Standards Update	Date

Amortized Cost Basis	Added	Accounting Standards Update No. 2016-13	06/16/2016
Debt Security (1st def.)	Amended	Accounting Standards Update No. 2016-19	12/14/2016
Debt Security (1st def.)	Added	Accounting Standards Update No. 2016-13	06/16/2016
Effective Interest Rate	Amended	Accounting Standards Update No. 2016-19	12/14/2016
Effective Interest Rate	Added	Accounting Standards Update No. 2016-13	06/16/2016
Financial Asset (1st def.)	Superseded	Accounting Standards Update No. 2016-19	12/14/2016
Financial Asset (1st def.)	Added	Accounting Standards Update No. 2016-13	06/16/2016
Financial Asset (2nd def.)	Added	Accounting Standards Update No. 2016-19	12/14/2016
Loan (2nd def.)	Added	Accounting Standards Update No. 2016-13	06/16/2016
Not-for-Profit Entity	Added	Accounting Standards Update No. 2016-13	06/16/2016
Public Business Entity	Amended	Maintenance Update 2017-06 (PDF)	04/07/2017
Public Business Entity	Added	Accounting Standards Update No. 2016-13	06/16/2016
Purchased Financial Assets with Credit Deterioration	Amended	Accounting Standards Update No. 2016-19	12/14/2016
Purchased Financial Assets with Credit Deterioration	Added	Accounting Standards Update No. 2016-13	06/16/2016
Securities and Exchange Commission (SEC) Filer	Added	Accounting Standards Update No. 2016-13	06/16/2016
Troubled Debt Restructuring	Superseded	Accounting Standards Update No. 2022-02	03/31/2022
Troubled Debt Restructuring	Added	Accounting Standards Update No. 2016-13	06/16/2016

326-10-05-1	Added	Accounting Standards Update No. 2016-13	06/16/2016
326-10-05-2	Added	Accounting Standards Update No. 2016-13	06/16/2016
326-10-15-1	Added	Accounting Standards Update No. 2016-13	06/16/2016
326-10-65-1	Amended	Accounting Standards Update No. 2022-02	03/31/2022
326-10-65-1	Amended	Accounting Standards Update No. 2019-11	11/26/2019
326-10-65-1	Amended	Accounting Standards Update No. 2019-10	11/15/2019
326-10-65-1	Amended	Accounting Standards Update No. 2019-05	05/15/2019
326-10-65-1	Amended	Accounting Standards Update No. 2019-04	04/25/2019
326-10-65-1	Amended	Accounting Standards Update No. 2018-19	11/15/2018
326-10-65-1	Amended	Accounting Standards Update No. 2017-03	01/23/2017
326-10-65-1	Amended	Accounting Standards Update No. 2016-19	12/14/2016
326-10-65-1	Added	Accounting Standards Update No. 2016-13	06/16/2016
326-10-65-2	Added	Accounting Standards Update No. 2019-04	04/25/2019
326-10-65-3	Added	Accounting Standards Update No. 2019-05	05/15/2019
326-10-65-4	Amended	Accounting Standards Update No. 2020-03	03/09/2020
326-10-65-4	Added	Accounting Standards Update No. 2019-11	11/26/2019
326-10-65-5	Added	Accounting Standards Update No. 2022-02	03/31/2022
326-10-65-6	Added	Accounting Standards Update No. 2025-05	07/30/2025
326-10-65-7	Added	Accounting Standards Update No. 2025-08	11/12/2025

326-10-05Overview and Background

Source downloaded: 2026-09-09T23:49:01.456Z.Record version d55702cb0594. Effective date must be checked in the source.

326-10-05-1

This Topic provides guidance on how an entity should measure credit losses on financial instruments.

326-10-05-2

Topic 326 includes the following Subtopics:

a
Overall
b
Financial Instruments—Credit Losses—Measured at Amortized Cost
c
Financial Instruments—Credit Losses—Available-for-Sale Debt Securities

326-10-15Scope and Scope Exceptions

Source downloaded: 2026-09-09T23:49:03.799Z.Record version b000e1263772. Effective date must be checked in the source.

Entities

326-10-15-1

The guidance in this Subtopic applies to all entities.

326-10-65Transition and Open Effective Date Information

Source downloaded: 2026-09-09T23:49:10.588Z.Record version 08bbe47431dc. Effective date must be checked in the source.

326-10-65-1

Paragraph superseded on 06/21/2024 after the end of the transition period stated in Accounting Standards Updates No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, No. 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, No. 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, No. 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief, No. 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates, No. 2019-11, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, and No. 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.

326-10-65-2

Paragraph superseded on 06/21/2024 after the end of the transition period stated in Accounting Standards Updates No. 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments.

326-10-65-3

Paragraph superseded on 06/21/2024 after the end of the transition period stated in Accounting Standards Updates No. 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief.

326-10-65-4

Paragraph superseded on 06/21/2024 after the end of the transition period stated in Accounting Standards Updates No. 2019-11, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, and No. 2020-03, Codification Improvements to Financial Instruments.

326-10-65-5

Paragraph superseded on 06/21/2024 after the end of the transition period stated in Accounting Standards Updates No. 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.

326-10-65-6

Accounting Standards Update 2025-05

2027-06-14

2025-12-16

The following represents the transition and effective date information related to Accounting Standards Update No. 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets:

Effective date and early adoption

a
All entities shall apply the pending content that links to this paragraph for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods.
b
Early adoption of the pending content that links to this paragraph is permitted in both interim and annual reporting periods in which financial statements have not yet been issued or made available for issuance. If an entity adopts the pending content that links to this paragraph in an interim reporting period, it shall apply the pending content as of the beginning of the annual reporting period that includes that interim reporting period.

Transition method

c
An entity shall apply the pending content that links to this paragraph prospectively to estimates of expected credit losses on asset balances described in paragraph 326-20-30-10A performed after the date of adoption.
d
An entity other than a public business entity that elects the practical expedient and, if applicable, the accounting policy election after the effective date would not need to perform a preferability assessment in accordance with paragraph 250-10-45-2.

326-10-65-7

Accounting Standards Update 2025-08

2028-06-13

2026-12-16

The following represents the transition and effective date information related to Accounting Standards Update No. 2025-08, Financial Instruments—Credit Losses (Topic 326): Purchased Loans:

Effective date and early adoption

a
All entities shall apply the pending content that links to this paragraph for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods.
b
Early adoption of the pending content that links to this paragraph is permitted in an interim or annual reporting period in which financial statements have not yet been issued or made available for issuance. If an entity adopts the pending content that links to this paragraph in an interim reporting period, it shall apply the pending content as of the beginning of that interim reporting period or the beginning of the annual reporting period that includes that interim reporting period.

Transition method

c
An entity shall apply the pending content that links to this paragraph prospectively to loans that are acquired on or after the date of initial application of the pending content.