Accounting Standards Update 2025-08: Purchased Loans

FASB Accounting Standards Updates

Published January 1st, 2026

Detected March 13th, 2026

Summary

The FASB has issued Accounting Standards Update 2025-08, amending Topic 326 (Credit Losses) concerning purchased loans. This update provides new guidance on accounting for credit losses on purchased loans, effective for fiscal years beginning after December 15, 2025.

View original document View source feed page

What changed

Accounting Standards Update (ASU) 2025-08 from the FASB amends Topic 326, Financial Instruments—Credit Losses, specifically addressing the accounting for purchased loans. The update introduces new guidance that will impact how entities recognize and measure credit losses on loans acquired through purchase. This revision aims to clarify and enhance the existing framework for credit loss accounting for these specific financial instruments.

Entities that acquire loans through purchase transactions will need to review and potentially update their accounting policies and procedures to comply with ASU 2025-08. The new guidance becomes effective for fiscal years beginning after December 15, 2025, with early adoption permitted. Compliance will require careful consideration of the specific provisions outlined in the update to ensure accurate financial reporting and avoid potential restatements or regulatory scrutiny.

What to do next

Review ASU 2025-08 for specific guidance on purchased loans.
Update accounting policies and procedures related to credit loss recognition for purchased loans.
Ensure compliance with the new guidance for fiscal years beginning after December 15, 2025.

Source document (simplified)

ACCOUNTING STANDARDS UPDATE 2025-08—FINANCIAL INSTRUMENTS—CREDIT LOSSES (TOPIC 326): PURCHASED LOANS

Copyright © 2026 by Financial Accounting Foundation. All rights reserved. Certain portions may include material copyrighted by American Institute of Certified Public Accountants. Content copyrighted by Financial Accounting Foundation, or any third parties who have not provided specific permission, may not be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the Financial Accounting Foundation or such applicable third party. Financial Accounting Foundation claims no copyright in any portion hereof that constitutes a work of the United States Government.

By clicking on the ACCEPT button, you confirm that you have read and understand the FASB Website Terms and Conditions.

Do you accept the terms?

Accept Reject