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FASB ASU 2025-12 — Codification Improvements

Issued technical corrections affecting multiple Codification Topics, including a narrow pending diluted EPS clarification and investment and fair value references.

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Publisher: Financial Accounting Foundation
Standing: Primary authority
Version: ASU 2025-12
Relevant parts: Issue-by-issue amendments and effective-date section
Currency: future · checked Aug 8, 2026

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The update is a standards-clock control, not one unified accounting model. Its Topic 260 issue clarifies the combined numerator-and-denominator dilution test for specified stock-or-cash contracts reported as assets or liabilities when continuing operations is a loss. The course checks whether a specific technical correction affects the fact pattern and keeps current and pending content in separate columns until adoption.