ASU 2025-05 – Improvements to Guidance on Measurement of Credit Losses – A Simplified Path
Withum
AUGUST 14, 2025
Accounting Standards Update (ASU) 2025-05 – Measurement of Credit Losses for Accounts Receivable and Contract Assets , issued in July 2025, introduces a practical expedient and accounting policy election under Topic 326: Financial Instruments—Credit Losses, specifically tailored to ease the burden for entities when estimating credit losses for accounts receivable and contract assets.
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