The FASB Accounting Standards Update (ASU)

The FASB Accounting Standards Update (ASU) is a directive issued by the Financial Accounting Standards Board, which sets the rules for how companies in the U.S. report their financial information. ASUs provide updates or changes to existing accounting standards, ensuring that financial reporting remains relevant and clear. This helps investors, regulators, and the public understand a company's financial health. Each update aims to improve transparency, consistency, and comparability in financial statements, making it easier to assess a company's performance and make informed decisions.