# ASC 326-10: Financial Instruments—Credit Losses — Overall

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/326/10/)

Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.

Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure.

Source downloaded (UTC): 2026-09-09T23:48:58.995Z to 2026-09-09T23:49:14.132Z

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## ASC 326-10: Financial Instruments—Credit Losses — Overall

### Machine-generated study aids

```json
{
  "summary": "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in Section 65 for recent ASUs, since the CECL-adoption transition paragraphs from ASU 2016-13 and related updates were superseded on 06/21/2024 once the transition period ended.",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": [
    "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CECL transition paragraphs tied to ASUs 2016-13, 2018-19, 2019-04, 2019-05, 2019-10, 2019-11, 2020-03, and 2022-02 were superseded on 06/21/2024 after the end of their transition periods (326-10-65-1 through 65-5).",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))."
  ],
  "categories": [
    "Financial instruments",
    "Impairment",
    "Transition and effective dates"
  ],
  "audience_level": "intermediate",
  "student_note": "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.",
  "related_topics": [
    "326-20",
    "326-30",
    "310-10",
    "250-10",
    "805-20",
    "820-10"
  ],
  "key_concepts": [
    "credit losses",
    "current expected credit losses",
    "scope",
    "effective dates",
    "transition method",
    "prospective application",
    "practical expedient",
    "purchased loans"
  ]
}
```

Source downloaded (UTC): 2026-09-09T23:48:58.995Z to 2026-09-09T23:48:58.995Z

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## ASC 326-10-00: 00 Status

[Read section](https://asc.understandingaccounting.org/asc/326/10/#00-status)

SEC content: no

##### [326-10-00-1](https://asc.understandingaccounting.org/asc/326/10/#326-10-00-1)

Pending content: no

Source downloaded (UTC): 2026-09-09T23:48:58.995Z to 2026-09-09T23:48:58.995Z

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The following table identifies the changes made to this Subtopic.

<table class="asc-table" id="SL82896620-210439"><tbody><tr><td class="entry"><strong class="ph b">Paragraph</strong></td><td class="entry"><strong class="ph b">Action</strong></td><td class="entry"><strong class="ph b">Accounting Standards Update</strong></td><td class="entry"><strong class="ph b">Date</strong></td></tr><tr><td class="entry"></td><td class="entry"></td><td class="entry"></td><td class="entry"></td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/a/#amortized-cost-basis" class="term" title="The amortized cost basis is the amount at which a financing receivable or investment is originated or acquired, adjusted for applicable accrued interest, accretion, or amortization of premium, discount, and net deferred fees or costs, collection of cash, writeoffs, foreign exchange, and fair value hedge accounting adjustments."><span>Amortized Cost Basis</span></a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2016-13/" class="xref">Accounting Standards Update No. 2016-13</a></td><td class="entry">06/16/2016</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/d/#debt-security" class="term" title="Any security representing a creditor relationship with an entity. The term debt security also includes all of the following: Preferred stock that by its terms either must be redeemed by the issuing entity or is redeemable at the option of the investor A collateralized mortgage obligation (or other instrument) that is issued in equity form but is required to be accounted for as a nonequity instrument regardless of how that instrument is classified (that is, whether equity or debt) in the issuer's statement of financial position U.S. Treasury securities U.S. government agency securities Municipal securities Corporate bonds Convertible debt Commercial paper All securitized debt instruments, such as collateralized mortgage obligations and real estate mortgage investment conduits Interest-only and principal-only strips. The term debt security excludes all of the following: Option contracts Financial futures contracts Forward contracts Lease contracts Receivables that do not meet the definition of security and, so, are not debt securities, for example: Trade accounts receivable arising from sales on credit by industrial or commercial entities Loans receivable arising from consumer, commercial, and real estate lending activities of financial institutions."><span>Debt Security</span></a> (1st def.)</td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2016-19/" class="xref">Accounting Standards Update No. 2016-19</a></td><td class="entry">12/14/2016</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/d/#debt-security" class="term" title="Any security representing a creditor relationship with an entity. The term debt security also includes all of the following: Preferred stock that by its terms either must be redeemed by the issuing entity or is redeemable at the option of the investor A collateralized mortgage obligation (or other instrument) that is issued in equity form but is required to be accounted for as a nonequity instrument regardless of how that instrument is classified (that is, whether equity or debt) in the issuer's statement of financial position U.S. Treasury securities U.S. government agency securities Municipal securities Corporate bonds Convertible debt Commercial paper All securitized debt instruments, such as collateralized mortgage obligations and real estate mortgage investment conduits Interest-only and principal-only strips. The term debt security excludes all of the following: Option contracts Financial futures contracts Forward contracts Lease contracts Receivables that do not meet the definition of security and, so, are not debt securities, for example: Trade accounts receivable arising from sales on credit by industrial or commercial entities Loans receivable arising from consumer, commercial, and real estate lending activities of financial institutions."><span>Debt Security</span></a> (1st def.)</td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2016-13/" class="xref">Accounting Standards Update No. 2016-13</a></td><td class="entry">06/16/2016</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/e/#effective-interest-rate" class="term" title="The rate of return implicit in the financial asset, that is, the contractual interest rate adjusted for any net deferred fees or costs, premium, or discount existing at the origination or acquisition of the financial asset. For purchased financial assets with credit deterioration, however, to decouple interest income from credit loss recognition, the premium or discount at acquisition excludes the discount embedded in the purchase price that is attributable to the acquirer's assessment of credit losses at the date of acquisition."><span>Effective Interest Rate</span></a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2016-19/" class="xref">Accounting Standards Update No. 2016-19</a></td><td class="entry">12/14/2016</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/e/#effective-interest-rate" class="term" title="The rate of return implicit in the financial asset, that is, the contractual interest rate adjusted for any net deferred fees or costs, premium, or discount existing at the origination or acquisition of the financial asset. For purchased financial assets with credit deterioration, however, to decouple interest income from credit loss recognition, the premium or discount at acquisition excludes the discount embedded in the purchase price that is attributable to the acquirer's assessment of credit losses at the date of acquisition."><span>Effective Interest Rate</span></a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2016-13/" class="xref">Accounting Standards Update No. 2016-13</a></td><td class="entry">06/16/2016</td></tr><tr><td class="entry"><strong class="ph b">Financial Asset</strong> (1st def.)</td><td class="entry">Superseded</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2016-19/" class="xref">Accounting Standards Update No. 2016-19</a></td><td class="entry">12/14/2016</td></tr><tr><td class="entry"><strong class="ph b">Financial Asset</strong> (1st def.)</td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2016-13/" class="xref">Accounting Standards Update No. 2016-13</a></td><td class="entry">06/16/2016</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/f/#financial-asset" class="term" title="Cash, evidence of an ownership interest in an entity, or a contract that conveys to one entity a right to do either of the following: Receive cash or another financial instrument from a second entity Exchange other financial instruments on potentially favorable terms with the second entity."><span>Financial Asset</span></a> (2nd def.)</td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2016-19/" class="xref">Accounting Standards Update No. 2016-19</a></td><td class="entry">12/14/2016</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/l/#loan" class="term" title="A contractual right to receive money on demand or on fixed or determinable dates that is recognized as an asset in the creditor's statement of financial position. Examples include but are not limited to accounts receivable (with terms exceeding one year) and notes receivable."><span>Loan</span></a> (2nd def.)</td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2016-13/" class="xref">Accounting Standards Update No. 2016-13</a></td><td class="entry">06/16/2016</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity" class="term" title="An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans."><span>Not-for-Profit Entity</span></a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2016-13/" class="xref">Accounting Standards Update No. 2016-13</a></td><td class="entry">06/16/2016</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/p/#public-business-entity" class="term" title="A public business entity is a business entity meeting any one of the criteria below. Neither a not-for-profit entity nor an employee benefit plan is a business entity. It is required by the U.S. Securities and Exchange Commission (SEC) to file or furnish financial statements, or does file or furnish financial statements (including voluntary filers), with the SEC (including other entities whose financial statements or financial information are required to be or are included in a filing). It is required by the Securities Exchange Act of 1934 (the Act), as amended, or rules or regulations promulgated under the Act, to file or furnish financial statements with a regulatory agency other than the SEC. It is required to file or furnish financial statements with a foreign or domestic regulatory agency in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer. It has issued, or is a conduit bond obligor for, securities that are traded, listed, or quoted on an exchange or an over-the-counter market. It has one or more securities that are not subject to contractual restrictions on transfer, and it is required by law, contract, or regulation to prepare U.S. GAAP financial statements (including notes) and make them publicly available on a periodic basis (for example, interim or annual periods). An entity must meet both of these conditions to meet this criterion. An entity may meet the definition of a public business entity solely because its financial statements or financial information is included in another entity's filing with the SEC. In that case, the entity is only a public business entity for purposes of financial statements that are filed or furnished with the SEC."><span>Public Business Entity</span></a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/asc-pdf/GUID-86B34FCD-7B0A-4349-8682-E212043FD47A.pdf" class="pdf-link" target="_blank" rel="noopener">Maintenance Update 2017-06 (PDF)</a></td><td class="entry">04/07/2017</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/p/#public-business-entity" class="term" title="A public business entity is a business entity meeting any one of the criteria below. Neither a not-for-profit entity nor an employee benefit plan is a business entity. It is required by the U.S. Securities and Exchange Commission (SEC) to file or furnish financial statements, or does file or furnish financial statements (including voluntary filers), with the SEC (including other entities whose financial statements or financial information are required to be or are included in a filing). It is required by the Securities Exchange Act of 1934 (the Act), as amended, or rules or regulations promulgated under the Act, to file or furnish financial statements with a regulatory agency other than the SEC. It is required to file or furnish financial statements with a foreign or domestic regulatory agency in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer. It has issued, or is a conduit bond obligor for, securities that are traded, listed, or quoted on an exchange or an over-the-counter market. It has one or more securities that are not subject to contractual restrictions on transfer, and it is required by law, contract, or regulation to prepare U.S. GAAP financial statements (including notes) and make them publicly available on a periodic basis (for example, interim or annual periods). An entity must meet both of these conditions to meet this criterion. An entity may meet the definition of a public business entity solely because its financial statements or financial information is included in another entity's filing with the SEC. In that case, the entity is only a public business entity for purposes of financial statements that are filed or furnished with the SEC."><span>Public Business Entity</span></a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2016-13/" class="xref">Accounting Standards Update No. 2016-13</a></td><td class="entry">06/16/2016</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/p/#purchased-financial-assets-with-credit-deterioration" class="term" title="Acquired individual financial assets (or acquired groups of financial assets with similar risk characteristics) that as of the date of acquisition have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by an acquirer's assessment. See paragraph 326-20-55-5 for more information on the meaning of similar risk characteristics for assets measured on an amortized cost basis."><span>Purchased Financial Assets with Credit Deterioration</span></a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2016-19/" class="xref">Accounting Standards Update No. 2016-19</a></td><td class="entry">12/14/2016</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/p/#purchased-financial-assets-with-credit-deterioration" class="term" title="Acquired individual financial assets (or acquired groups of financial assets with similar risk characteristics) that as of the date of acquisition have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by an acquirer's assessment. See paragraph 326-20-55-5 for more information on the meaning of similar risk characteristics for assets measured on an amortized cost basis."><span>Purchased Financial Assets with Credit Deterioration</span></a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2016-13/" class="xref">Accounting Standards Update No. 2016-13</a></td><td class="entry">06/16/2016</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/s/#securities-and-exchange-commission-sec-filer" class="term" title="An entity that is required to file or furnish its financial statements with either of the following: The Securities and Exchange Commission (SEC) With respect to an entity subject to Section 12(i) of the Securities Exchange Act of 1934, as amended, the appropriate agency under that Section. Financial statements for other entities that are not otherwise SEC filers whose financial statements are included in a submission by another SEC filer are not included within this definition."><span>Securities and Exchange Commission (SEC) Filer</span></a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2016-13/" class="xref">Accounting Standards Update No. 2016-13</a></td><td class="entry">06/16/2016</td></tr><tr><td class="entry"><strong class="ph b">Troubled Debt Restructuring</strong></td><td class="entry">Superseded</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2022-02/" class="xref">Accounting Standards Update No. 2022-02</a></td><td class="entry">03/31/2022</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/t/#troubled-debt-restructuring" class="term" title="A restructuring of a debt constitutes a troubled debt restructuring if the creditor for economic or legal reasons related to the debtor's financial difficulties grants a concession to the debtor that it would not otherwise consider."><span>Troubled Debt Restructuring</span></a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2016-13/" class="xref">Accounting Standards Update No. 2016-13</a></td><td class="entry">06/16/2016</td></tr><tr><td class="entry"></td><td class="entry"></td><td class="entry"></td><td class="entry"></td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/326/10/#326-10-05-1" class="xref">326-10-05-1</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2016-13/" class="xref">Accounting Standards Update No. 2016-13</a></td><td class="entry">06/16/2016</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/326/10/#326-10-05-2" class="xref">326-10-05-2</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2016-13/" class="xref">Accounting Standards Update No. 2016-13</a></td><td class="entry">06/16/2016</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/326/10/#326-10-15-1" class="xref">326-10-15-1</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2016-13/" class="xref">Accounting Standards Update No. 2016-13</a></td><td class="entry">06/16/2016</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/326/10/#326-10-65-1" class="xref">326-10-65-1</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2022-02/" class="xref">Accounting Standards Update No. 2022-02</a></td><td class="entry">03/31/2022</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/326/10/#326-10-65-1" class="xref">326-10-65-1</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2019-11/" class="xref">Accounting Standards Update No. 2019-11</a></td><td class="entry">11/26/2019</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/326/10/#326-10-65-1" class="xref">326-10-65-1</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2019-10/" class="xref">Accounting Standards Update No. 2019-10</a></td><td class="entry">11/15/2019</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/326/10/#326-10-65-1" class="xref">326-10-65-1</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2019-05/" class="xref">Accounting Standards Update No. 2019-05</a></td><td class="entry">05/15/2019</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/326/10/#326-10-65-1" class="xref">326-10-65-1</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2019-04/" class="xref">Accounting Standards Update No. 2019-04</a></td><td class="entry">04/25/2019</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/326/10/#326-10-65-1" class="xref">326-10-65-1</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2018-19/" class="xref">Accounting Standards Update No. 2018-19</a></td><td class="entry">11/15/2018</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/326/10/#326-10-65-1" class="xref">326-10-65-1</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2017-03/" class="xref">Accounting Standards Update No. 2017-03</a></td><td class="entry">01/23/2017</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/326/10/#326-10-65-1" class="xref">326-10-65-1</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2016-19/" class="xref">Accounting Standards Update No. 2016-19</a></td><td class="entry">12/14/2016</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/326/10/#326-10-65-1" class="xref">326-10-65-1</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2016-13/" class="xref">Accounting Standards Update No. 2016-13</a></td><td class="entry">06/16/2016</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/326/10/#326-10-65-2" class="xref">326-10-65-2</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2019-04/" class="xref">Accounting Standards Update No. 2019-04</a></td><td class="entry">04/25/2019</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/326/10/#326-10-65-3" class="xref">326-10-65-3</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2019-05/" class="xref">Accounting Standards Update No. 2019-05</a></td><td class="entry">05/15/2019</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/326/10/#326-10-65-4" class="xref">326-10-65-4</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2020-03/" class="xref">Accounting Standards Update No. 2020-03</a></td><td class="entry">03/09/2020</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/326/10/#326-10-65-4" class="xref">326-10-65-4</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2019-11/" class="xref">Accounting Standards Update No. 2019-11</a></td><td class="entry">11/26/2019</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/326/10/#326-10-65-5" class="xref">326-10-65-5</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2022-02/" class="xref">Accounting Standards Update No. 2022-02</a></td><td class="entry">03/31/2022</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/326/10/#326-10-65-6" class="xref">326-10-65-6</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2025-05/" class="xref">Accounting Standards Update No. 2025-05</a></td><td class="entry">07/30/2025</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/326/10/#326-10-65-7" class="xref">326-10-65-7</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2025-08/" class="xref">Accounting Standards Update No. 2025-08</a></td><td class="entry">11/12/2025</td></tr></tbody></table>

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## ASC 326-10-05: 05 Overview and Background

[Read section](https://asc.understandingaccounting.org/asc/326/10/#05-overview-and-background)

SEC content: no

##### [326-10-05-1](https://asc.understandingaccounting.org/asc/326/10/#326-10-05-1)

Pending content: no

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

##### [326-10-05-2](https://asc.understandingaccounting.org/asc/326/10/#326-10-05-2)

Pending content: no

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Topic 326 includes the following Subtopics:

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

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## ASC 326-10-15: 15 Scope and Scope Exceptions

[Read section](https://asc.understandingaccounting.org/asc/326/10/#15-scope-and-scope-exceptions)

SEC content: no

#### Entities

##### [326-10-15-1](https://asc.understandingaccounting.org/asc/326/10/#326-10-15-1)

Pending content: no

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The guidance in this Subtopic applies to all entities.

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## ASC 326-10-65: 65 Transition and Open Effective Date Information

[Read section](https://asc.understandingaccounting.org/asc/326/10/#65-transition-and-open-effective-date-information)

SEC content: no

##### [326-10-65-1](https://asc.understandingaccounting.org/asc/326/10/#326-10-65-1)

Pending content: no

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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](https://asc.understandingaccounting.org/asc/326/10/#326-10-65-2)

Pending content: no

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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](https://asc.understandingaccounting.org/asc/326/10/#326-10-65-3)

Pending content: no

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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](https://asc.understandingaccounting.org/asc/326/10/#326-10-65-4)

Pending content: no

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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](https://asc.understandingaccounting.org/asc/326/10/#326-10-65-5)

Pending content: no

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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_.

#### Transition Related to Accounting Standards Update No. 2025-05, <em class="ph i">Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets</em>

##### [326-10-65-6](https://asc.understandingaccounting.org/asc/326/10/#326-10-65-6)

Pending content: no

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[Accounting Standards Update 2025-05](https://asc.understandingaccounting.org/updates/asu-2025-05/)

2027-06-14

2025-12-16

2025-12-16

2025-12-16

2025-12-16

2025-12-16

2025-12-16

2025-12-16

2025-12-16

2025-12-16

2025-12-16

2025-12-16

2025-12-16

2025-12-16

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**

1.  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.
    
2.  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**

1.  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](https://asc.understandingaccounting.org/asc/326/20/#326-20-30-10A) performed after the date of adoption.
    
2.  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](https://asc.understandingaccounting.org/asc/250/10/#250-10-45-2).

#### Transition Related to Accounting Standards Update No. 2025-08, <em class="ph i">Financial Instruments—Credit Losses (Topic 326): Purchased Loans</em>

##### [326-10-65-7](https://asc.understandingaccounting.org/asc/326/10/#326-10-65-7)

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[Accounting Standards Update 2025-08](https://asc.understandingaccounting.org/updates/asu-2025-08/)

2028-06-13

2026-12-16

2026-12-16

2026-12-16

2026-12-16

2026-12-16

2026-12-16

2026-12-16

2026-12-16

2026-12-16

2026-12-16

2026-12-16

2026-12-16

2026-12-16

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**

1.  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.
    
2.  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**

1.  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.