ASU 2025-06 is issued but not automatically the governing model for a 2026 or 2027 case. Mandatory application begins for annual periods after December 15, 2027, including interim periods within; early adoption is permitted.
Place four fields above the cost ledger: annual period, entity scope, adoption status, and transition method. If the entity has not adopted, use the current project-stage model. If the facts establish valid adoption, use the pending authorization/funding, probable-completion-and-use, and significant- development-uncertainty controls.
A comparison can show both outcomes in adjacent columns. A journal entry gets one column. Mixing a current-stage start date with a pending-model stop condition produces no recognized accounting policy at all.
Apply the distinction
A comparison may show current and pending outcomes, but the ledger must select one. Record the annual period, eligibility, early-adoption decision, and transition method before using either capitalization trigger.
Authority
Read ASC 350-40-65-4 for the effective date and transition provisions for ASU 2025-06.
Put the concept to work
Analyze this concept
- Select current or ASU 2025-06 pending content from supplied period, early-adoption, and transition facts and reject a schedule that blends their capitalization triggers.
Learning resources
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Build on these ideas
- Internal-use software — Apply
To analyze this concept: Required. The standards clock is applied only after the software scope conclusion.