Understanding Accounting
Menu
External resource

ASU 2016-13, Measurement of Credit Losses on Financial Instruments

Foundational FASB amendment establishing Topic 326 and the current expected credit loss model.

Authority and currency

About this authority

Publisher
Financial Accounting Foundation
Standing
Primary authority
Version
Accounting Standards Update 2016-13
Relevant parts
Summary; Topic 326 amendments; examples; transition; basis for conclusions
Currency
current · checked Aug 7, 2026

Open the primary source

The update replaced delayed incurred-loss recognition for affected amortized- cost assets with an allowance reflecting expected losses. Use its examples and basis to understand the model, while checking subsequent amendments and current Topic 326 before applying it to a reporting period.