Updated 2 May 2026 · Reviewed by US GAAP Buddy Editorial Team
2025 marked a transformative year for FASB standard-setting, with the board advancing multiple projects through redeliberations and final stages while prioritizing emerging areas including digital assets and environmental accounting. The year saw completion of significant updates to financial instruments guidance (credit losses for purchased assets, debt exchanges), derivatives and hedging rules, and new frameworks for government grants and environmental credits. Notably, FASB added two crypto-related projects to its technical agenda—classification of stablecoins as cash equivalents and accounting for crypto asset transfers—reflecting market evolution and stakeholder demand for clearer guidance.
Purchased Financial Assets (ASC 326) — Board affirmed narrow-scope amendments to improve accounting for purchased financial assets excluding those with credit deterioration. Loan receivables (excluding credit cards) are subject to amendments; held-to-maturity debt securities were excluded. Seasoning criteria and initial amortized cost basis calculations were affirmed (April 2025).
Accounting for Debt Exchanges (ASC 470-50, 405-20) — Board completed redeliberations on contemporaneous exchanges of debt instruments. Affirmed conditions requiring new debt to have multiple creditors, existing debt repaid at market terms, and new debt issued at market terms. Removed requirement to follow customary market process. Amendments are mandatory, not optional (September 2025).
Derivatives Scope Refinements (ASC 815, 606) — Board affirmed scope exceptions for variables based on operations or activities specific to one party; confirmed that market-based variables do not qualify for exceptions. Continued redeliberations on predominant characteristics assessment and scope clarifications (January–April 2025).
Hedge Accounting Improvements (ASC 815) — Board decided not to provide exception for dissimilar risks in hedged portfolios; made choose-your-rate debt hedge accounting optional; clarified net written options treatment; and confirmed foreign-currency and nonfinancial transaction hedging amendments (March 2025).
Classification of Digital Assets as Cash Equivalents (new project) — Board added project to clarify whether certain digital assets (including stablecoins) may be classified as cash equivalents, informed by President's Working Group recommendations (October 2025).
Accounting for Transfers of Crypto Assets (new project) — Board expanded Subtopic 350-60 scope to address wrapped tokens and receipt tokens; clarified derecognition guidance for control assessment in crypto transfer arrangements (November 2025).
Environmental Credits (ASC 818) — Board affirmed definition and scope of environmental credits as non-physical, non-financial intangibles representing enforceable rights to prevent or reduce emissions; addressed recognition, measurement, and presentation requirements (August 2025).
Government Grants (ASC 832) — Board affirmed accounting model leveraging IAS 20 with targeted improvements; affirmed scope including business entities and specific grant definitions; clarified recognition threshold and timing (June 2025).
| Project | Status |
|---|---|
| Derivatives Scope Refinements (ASC 815/606) | Redeliberations ongoing; final ASU target H2 2025 |
| Equity Method Operability (ASC 323) | Added to agenda; addresses subset of equity method investments and allocation structures; timing TBD |
| Intangibles Recognition & Disclosure | Research phase; ITC feedback received; no decisions yet (September 2025) |
| Financial Key Performance Indicators | Research phase; ITC feedback received; no decisions yet (September 2025) |
| Leases Post-Implementation Review (ASC 842) | PIR phase ongoing; Board reviewed feedback summary and academic research; no standard amendments proposed |
| Classification of Digital Assets as Cash Equivalents | Initial deliberation phase; ED timing TBD |
| Accounting for Transfers of Crypto Assets | Initial deliberation phase; ED timing TBD |
| Mortgage Servicing Rights Fair Value Measurement | EITF agenda item added; fair value inclusion of recapture under review |
Digital Asset Classification — Two new crypto-related projects are advancing through 2025. The classification of stablecoins as cash equivalents could significantly affect cash flow statement presentation and liquidity reporting. Controllers should track ED timing and scope (expected late 2025 or early 2026) and assess whether their organizations hold or plan to hold stablecoins pending final guidance.
Purchased Financial Asset Measurement — Narrow-scope amendments to ASC 326 finalize April 2025 decisions on how entities calculate initial amortized cost basis for purchased financial assets excluding those with credit deterioration. Financial institutions and investors in loan portfolios should prepare systems and processes for revised measurement methodologies; effective date and transition provisions will be announced in the final ASU expected Q4 2025.
Government Grants Accounting — ASC 832 final update (expected Q4 2025) will establish first-ever US GAAP guidance for government grants to business entities, leveraging IAS 20. Entities receiving R&D tax credits, stimulus funding, or other government assistance should monitor recognition and measurement timing thresholds; the new framework may require balance sheet reclassifications and disclosure enhancements currently not required under legacy practice.