FASB ASU 2025-06 - Internal-Use Software (Subtopic 350-40) for Risk Managers
What does FASB ASU 2025-06 - Internal-Use Software (Subtopic 350-40) require of a Risk Manager?
The FASB's rewrite of internal-use software accounting: capitalisation starts when management has authorised and funded a project and completion and intended use are probable, deferred while significant development uncertainty remains; the Update also sets the cost list, impairment, upgrade, website and hosting implementation rules, aligns disclosure with property, plant and equipment, and gives three transition routes for annual periods beginning after 15 December 2027. Under FASB ASU 2025-06 - Internal-Use Software (Subtopic 350-40), which defines 15 controls, a Risk Manager's work is deciding which controls you own outright, which you share and which belong to another team, then holding the evidence for the first group.
Which FASB ASU 2025-06 - Internal-Use Software (Subtopic 350-40) controls land on the Risk Manager
Risk Managers identify, assess, and prioritise organisational risks. They build risk registers, conduct risk assessments, define risk appetite, and ensure that compliance frameworks address the most material threats to the organisation.
FASB ASU 2025-06 - Internal-Use Software (Subtopic 350-40) defines 15 controls across 5 domains that directly affect the Risk Manager role. Understanding which controls fall within your ownership, which are shared, and which are owned by other teams is the foundation of effective compliance management.
What a Risk Manager is accountable for under FASB ASU 2025-06 - Internal-Use Software (Subtopic 350-40)
Conducting enterprise risk assessments and maintaining the risk register
Defining risk appetite and tolerance levels with executive leadership
Mapping compliance controls to identified risks for coverage analysis
Monitoring key risk indicators (KRIs) and escalating emerging threats
Integrating compliance, operational, and strategic risk management
Where Risk Managers lose time on FASB ASU 2025-06 - Internal-Use Software (Subtopic 350-40)
These are the most common obstacles Risk Managers face when managing FASB ASU 2025-06 - Internal-Use Software (Subtopic 350-40) compliance, and how to address them:
Challenge 1
Quantifying cyber risk in financial terms that resonate with executives
Challenge 2
Identifying gaps between compliance control coverage and actual risk exposure
Challenge 3
Integrating risk data from siloed tools and departments
Challenge 4
Keeping risk assessments current as the threat landscape evolves
Challenge 5
Prioritising remediation when resources are limited
A working order for a Risk Manager starting on FASB ASU 2025-06 - Internal-Use Software (Subtopic 350-40)
1. Readiness Assessment
Take a 5-minute readiness assessment to identify your organisation's current gap profile against FASB ASU 2025-06 - Internal-Use Software (Subtopic 350-40). Get a prioritised action plan tailored to your specific situation.
2. Cross-Framework Mapping
Use our platform to map FASB ASU 2025-06 - Internal-Use Software (Subtopic 350-40) controls against other frameworks you already comply with. Identify overlapping controls to reduce duplicate effort.
3. Build Your Toolkit
Equip yourself with FASB ASU 2025-06 - Internal-Use Software (Subtopic 350-40) toolkits, self-assessments, and implementation guides from our store. Resources designed specifically for Risk Managers managing compliance programmes.
4. Continuous Monitoring
Establish ongoing compliance monitoring using our platform's gap analysis tools. Track your maturity over time and demonstrate progress to stakeholders.
FASB ASU 2025-06 - Internal-Use Software (Subtopic 350-40) in your sector
Who else owns part of FASB ASU 2025-06 - Internal-Use Software (Subtopic 350-40)
Questions Risk Managers ask about FASB ASU 2025-06 - Internal-Use Software (Subtopic 350-40)
What does a Risk Manager need to know about FASB ASU 2025-06 - Internal-Use Software (Subtopic 350-40)?
How does FASB ASU 2025-06 - Internal-Use Software (Subtopic 350-40) affect the Risk Manager role?
What are the biggest FASB ASU 2025-06 - Internal-Use Software (Subtopic 350-40) challenges for Risk Managers?
How should a Risk Manager prepare for a FASB ASU 2025-06 - Internal-Use Software (Subtopic 350-40) audit?
What tools help Risk Managers manage FASB ASU 2025-06 - Internal-Use Software (Subtopic 350-40) compliance?
Risk Manager: How ready is your organisation for FASB ASU 2025-06 - Internal-Use Software (Subtopic 350-40)?
Answer 25 questions and get a professional readiness report with gap analysis, maturity scores, and prioritised action items. Results in 5 minutes.