Accounting Standards Update

An Accounting Standards Update (ASU) is a formal document issued by accounting authorities, such as the Financial Accounting Standards Board (FASB), that clarifies, revises, or adds to existing accounting rules. These updates ensure that financial statements are prepared consistently and accurately across organizations, improving transparency and comparability for investors, regulators, and other stakeholders. Essentially, ASUs guide companies on how to record, report, and interpret financial information, reflecting changes in business practices, economic conditions, or regulatory requirements.