FAQs: Applying ASC 326 for Non-financial Entities

A common misconception is that only banks and financial entities need to comply with ASC 326, Financial Instruments – Credit Losses. Financial instruments many non-financial entities hold are in scope of the standard, including: trade accounts receivable, notes receivable, debt securities classified as held-to-maturity (HTM), lease receivables and others. We have put some of the most common questions we get regarding applying ASC 326 in this FAQ document to help you better understand the requirements.