By GreenGrowth CPAs Audit & Assurance Team · Updated October 2026 · Accounting Standards
The new accounting standards that matter most in 2026 are FASB updates on income tax disclosures, profits interest awards, and credit losses on receivables. Public companies also face expense disaggregation starting with annual periods beginning after December 15, 2026, while bigger changes to software and grant accounting arrive in 2028 and later.
Below are the updates we confirmed on fasb.org, with effective dates for public business entities and everyone else, plus where leases, CECL, and reference rate reform stand today.
QUICK ANSWER
For calendar-year private companies, the new accounting standards for 2026 are ASU 2023-09 (income tax disclosures), ASU 2024-01 (profits interest awards), and the optional ASU 2025-05 credit loss expedient. Public business entities adopted the first two in 2025 and next face ASU 2024-03 expense disaggregation. ASC 842 and CECL are already in effect for everyone, and ASC 848 relief ended on December 31, 2024.
New Accounting Standards 2026: At a Glance
- 2026 for private companies: New income tax disclosures, profits interest guidance, and an optional credit loss shortcut.
- Coming next: DISE for public business entities, then internal-use software in 2028 and government grants in 2029 and 2030.
- Already done: Leases (ASC 842) and CECL (ASC 326) are fully effective, and ASC 848 has sunset.
- How we help: GreenGrowth CPAs is a PCAOB-registered firm that helps companies adopt new GAAP and get audit-ready. Book a GAAP readiness review →
Recent FASB ASUs Summary
The FASB issues Accounting Standards Updates to change US GAAP. Most recent updates add disclosure, and a few change measurement.
Disclosure Updates
- Income taxes (ASU 2023-09): Every entity discloses income taxes paid, split among federal, state, and foreign, with any jurisdiction at 5% or more of the total shown separately. Public business entities also give a detailed rate reconciliation.
- Segments (ASU 2023-07): Public entities disclose significant segment expenses that the chief operating decision maker reviews.
- Expense disaggregation (ASU 2024-03): Public business entities break out inventory purchases, employee pay, depreciation, and amortization within each relevant expense caption. ASU 2025-01 clarified the start date for non-calendar fiscal years.
Recognition and Measurement Updates
- Crypto (ASU 2023-08): Qualifying crypto assets are carried at fair value, with changes in net income.
- Profits interests (ASU 2024-01): Four examples show when an award falls under ASC 718.
- Credit losses (ASU 2025-05): A simpler estimate for current receivables and contract assets.
- Government grants (ASU 2025-10): A new topic, ASC 832, for grants that business entities receive.
For the standards that took effect in earlier years, see our overview of 2024 US GAAP standards.
ASU Effective Dates 2026
Effective dates in the table come straight from the summary page of each ASU on fasb.org. "After Dec. 15, 2025" means a calendar-year company adopts on January 1, 2026. Early adoption is generally permitted.
▶ FASB ASU Effective Dates (as of October 2026)
| ASU | Topic | Public business entities | All other entities |
|---|---|---|---|
| ASU 2023-07 | Segment reporting: significant segment expenses | Fiscal years beginning after Dec. 15, 2023; interim periods in fiscal years beginning after Dec. 15, 2024 | Not applicable (public entities only) |
| ASU 2023-08 | Crypto assets at fair value | Fiscal years beginning after Dec. 15, 2024 | Fiscal years beginning after Dec. 15, 2024 |
| ASU 2023-09 | Income tax disclosures | Annual periods beginning after Dec. 15, 2024 | Annual periods beginning after Dec. 15, 2025 |
| ASU 2024-01 | Profits interest and similar awards | Annual periods beginning after Dec. 15, 2024 | Annual periods beginning after Dec. 15, 2025 |
| ASU 2025-05 | Credit losses on current receivables and contract assets | Annual periods beginning after Dec. 15, 2025 | Annual periods beginning after Dec. 15, 2025 |
| ASU 2024-03 and 2025-01 | Income statement expense disaggregation (DISE) | Annual periods beginning after Dec. 15, 2026; interim periods in annual periods beginning after Dec. 15, 2027 | Not applicable (public business entities only) |
| ASU 2025-04 | Share-based consideration payable to a customer | Annual periods beginning after Dec. 15, 2026 | Annual periods beginning after Dec. 15, 2026 |
| ASU 2025-07 | Derivatives scope; share-based noncash consideration from a customer | Annual periods beginning after Dec. 15, 2026 | Annual periods beginning after Dec. 15, 2026 |
| ASU 2025-06 | Internal-use software | Annual periods beginning after Dec. 15, 2027 | Annual periods beginning after Dec. 15, 2027 |
| ASU 2025-11 | Interim reporting improvements | Interim periods in annual periods beginning after Dec. 15, 2027 | Interim periods in annual periods beginning after Dec. 15, 2028 |
| ASU 2026-02 | Environmental credits | Annual periods beginning after Dec. 15, 2027 | Annual periods beginning after Dec. 15, 2028 |
| ASU 2025-10 | Government grants received by business entities | Annual periods beginning after Dec. 15, 2028 | Annual periods beginning after Dec. 15, 2029 |
In practice, 2026 is a disclosure year for private companies and a preparation year for public ones. Non-calendar fiscal years should work out their own first period.
💬 The Conversation Worth Having
Ask your controller: can we report income taxes paid by state today? ASU 2023-09 needs that number for 2026. A simple tax payment log by jurisdiction beats digging through bank records at year end.
Not sure which updates apply to your 2026 financial statements? We will map them for you.
Book a Review →Lease Accounting Updates (ASC 842)
ASC 842 is no longer new. Public business entities adopted it for fiscal years beginning after December 15, 2018. Through ASU 2020-05, the FASB moved private companies to fiscal years beginning after December 15, 2021. Calendar-year private companies have now reported under it since 2022.
None of the ASUs in our table changes the core lessee model. The work today is upkeep: tracking modifications, renewals, and new leases. Our guide to ASC 842 and your financial reporting covers the mechanics.
Credit Losses (CECL)
CECL, the current expected credit loss model in ASC 326, is also fully in effect. Under ASU 2019-10, it applied first to SEC filers that were not smaller reporting companies. All other entities, including private companies, adopted it for fiscal years beginning after December 15, 2022.
The 2026 news is relief. ASU 2025-05 covers current accounts receivable and current contract assets under ASC 606. Any entity may assume that conditions at the balance sheet date stay the same for the remaining life of those assets. Private companies that use that expedient may also elect to consider cash collected after the balance sheet date. Both apply to annual periods beginning after December 15, 2025.
Reference Rate Reform
This project is finished. ASC 848 gave optional relief for contracts and hedges moving off LIBOR. ASU 2022-06 extended that relief to December 31, 2024, after which no entity may apply it. Any new contract modification now follows normal GAAP.
Software Revenue and Software Costs
Revenue
Software revenue now follows ASC 606, the same five-step model as every other industry. ASU 2014-09 replaced the old industry guidance in Subtopic 985-605. Two newer updates, ASU 2025-04 and ASU 2025-07, address shares paid to or received from customers. Both start with annual periods beginning after December 15, 2026.
Internal-Use Software
ASU 2025-06 is the bigger change for tech teams. It removes the old project stages from ASC 350-40. You start capitalizing costs once management has authorized and committed funding and completion is probable. It applies to all entities for annual periods beginning after December 15, 2027, and it does not touch software you sell.
Impact on Private Companies
Private companies get later dates, but the same GAAP applies. Our suggested next steps:
- Map your updates: List each ASU in the table and mark it as applicable, not applicable, or early adoption.
- Collect tax payment data: Track income taxes paid by jurisdiction for ASU 2023-09.
- Review equity plans: Run any profits interest awards through the ASU 2024-01 examples.
- Decide on the expedient: Choose whether to adopt the ASU 2025-05 credit loss expedient and the policy election.
- Plan for 2028: Flag software projects that will straddle the ASU 2025-06 date.
A clean adoption keeps your financial statement audit on schedule. Our accounting and financial services team can build the schedules, and our audit team can review them before year end.
Frequently Asked Questions
For calendar-year companies, 2026 is the first year of several FASB updates. Private companies adopt ASU 2023-09 on income tax disclosures and ASU 2024-01 on profits interest awards. All entities may use the new credit loss practical expedient in ASU 2025-05. Public business entities adopted those first two updates in 2025 and now prepare for ASU 2024-03 expense disaggregation, which starts with annual periods beginning after December 15, 2026. Bigger changes for internal-use software and government grants follow in 2028 and later.
An ASU is an Accounting Standards Update issued by the Financial Accounting Standards Board. The FASB sets US generally accepted accounting principles (GAAP) for companies and nonprofits. Its authoritative rules live in the Accounting Standards Codification. An ASU is not authoritative on its own. It is the document that explains how the Codification is changing, why, and when. Each update gets a number made of the year and a sequence, such as ASU 2023-09, the ninth update issued in 2023.
Each ASU sets its own effective date, usually for fiscal years beginning after December 15 of a stated year. That wording means a calendar-year company adopts on January 1 of the following year. Public business entities often adopt first, and other entities get one more year. For example, ASU 2023-09 applies to public business entities for annual periods beginning after December 15, 2024, and to all others one year later. Most updates also permit early adoption.
Private companies follow the same GAAP as public ones, but they usually get later effective dates and some lighter rules. Several updates do not apply to them at all, such as segment reporting under ASU 2023-07 and expense disaggregation under ASU 2024-03. Others give private companies extra relief, like the ASU 2025-05 election to consider cash collected after the balance sheet date. Lenders, investors, and auditors still expect current GAAP, so plan each adoption early.
ASC 842 is the FASB lease accounting standard. It requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for most leases longer than 12 months. Leases are still classified as finance or operating, which drives how expense appears on the income statement. Public business entities adopted it for fiscal years beginning after December 15, 2018. Private companies adopted it for fiscal years beginning after December 15, 2021, so it is now fully in effect.
CECL stands for current expected credit loss. It is the impairment model in ASC 326 for financial assets measured at amortized cost, such as trade receivables, loans, and held-to-maturity debt securities. Instead of waiting until a loss is probable, an entity records the losses it expects over the life of the asset. That estimate uses past experience, current conditions, and reasonable forecasts. CECL took effect for private companies and smaller reporting companies in fiscal years beginning after December 15, 2022.
Where to Go From Here
Adopt New Standards Before Your Auditor Asks
We map the updates that apply, draft new disclosures, and flag gaps before fieldwork.
KEY DATES
New GAAP, No Surprises at Year End
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