Understanding Accounting
Menu
External resource

ASU 2026-01 — initial measurement of paid-in-kind preferred dividends

Future effective FASB amendment requiring stated rate initial measurement for in scope paid in kind dividends on equity classified preferred stock.

Authority and currency

About this authority

Publisher
Financial Accounting Foundation
Standing
Primary authority
Version
ASU 2026-01
Relevant parts
Summary; paragraphs 505-10-15-2 through 15-4, 505-10-30-1, and 505-10-65-1
Currency
future · checked Aug 8, 2026

Open the primary source

For an in-scope PIK dividend after adoption, initial measurement follows the stated PIK dividend rate and the agreement's specified base. The course keeps that future branch separate because the measurement can change both preferred equity and income available to common shareholders.