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STANDARDS TRACKER |
STANDARDS TRACKER
FASB proposed ASU: codification improvements and stablecoin cash equivalents
Two companion FASB proposals tackle Codification housekeeping and the stablecoin-as-cash-equivalent question at once. Comments due Nov. 19.
FASB released a proposed ASU on September 2, 2026 containing a new batch of technical corrections to the Codification. Per the Journal of Accountancy, the proposal includes clarifications to expected credit loss estimates and guidance for modified share-based payment awards among its more substantive items, alongside a range of other minor improvements.
BY THE NUMBERS
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See below EFFECTIVE |
1 SOURCE TRACKED |
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Sep 14 LAST UPDATED |
FASB ISSUER |
A companion proposed ASU addresses a practical question that has produced diversity in practice: whether stablecoins and certain other digital assets meet the existing definition of cash equivalents under Topic 230. Per the Journal of Accountancy, this companion proposal clarifies how the current definition applies to those assets - it does not rewrite the definition itself.
For close teams, the codification improvements proposal is largely housekeeping, but the expected credit loss and share-based payment clarifications warrant a read-through against existing accounting policies. The stablecoin proposal matters most to entities that hold or are considering holding digital assets classified near cash.
Both proposals are in comment periods closing November 19, 2026, per the Journal of Accountancy. No effective dates have been set. The proposals remain open for public input, and finalized standards have not been issued.
Until effective dates are set, close teams should document current accounting policy positions on any topics the proposed corrections touch, and flag the stablecoin proposal for any entity holding or evaluating digital assets that might qualify as cash equivalents.
WHAT TO DO IN THE CLOSE
| Read both proposed ASUs and identify any Codification issues that touch your entity's current accounting policies. | |
| If your entity holds stablecoins or is evaluating them, assess whether existing balance sheet classifications align with the proposed clarifications. | |
| Review expected credit loss and modified share-based payment award sections against your current estimates and documentation. | |
| Submit comment letters by November 19, 2026 on either or both proposals if any proposed change creates operational difficulty. | |
| Set a calendar reminder to revisit both proposals after the comment period closes for any changes before finalization. |
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QUESTIONS THIS ANSWERS
Does the FASB stablecoin proposal change the definition of cash equivalents?
Per the Journal of Accountancy, the companion proposed ASU clarifies how the current definition of cash equivalents applies to stablecoins and certain other digital assets. It does not rewrite the existing definition.
When is the comment deadline for the FASB codification improvements and stablecoin ASUs?
Comments on both proposed ASUs are due November 19, 2026, per the Journal of Accountancy.
Who does the codification improvements proposed ASU affect?
Per the Journal of Accountancy, the proposed ASU addresses technical corrections to the Codification, including clarifications on expected credit loss estimates and modified share-based payment awards, affecting entities within scope of that guidance.
SOURCES
Where this comes from
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A living page: it is re-read and updated as coverage arrives; last updated Monday September 14. Facts come from the linked sources; confirm against the issuer's own text before relying on it.
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