In June 2016, the FASB released ASU 2016-13, Financial Instruments – Credit Losses (Topic 326). While 2016 seems like it was eons ago, the standard only just became effective for public companies in 2020. For private companies, the standard will become effective beginning in 2023. As more and more companies begin to implement the standard, I thought it would be prudent to give an overview of the standard and what to look out for.
