Company: ABR-PF
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001253986-25-000022
Chunk: 164

Company: ARBOR REALTY TRUST INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 8
Chunk 164
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 high interest rate environment, tightening of capital markets and 

8

Table of ContentsARBOR REALTY TRUST, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

reduced property values, both globally and to our business, makes any estimate or assumption at September 30, 2025 inherently less certain.Recently Issued Accounting PronouncementsDescriptionEffective DateEffect on Financial StatementsIn September 2025, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2025-07, Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606): Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract.  The ASU introduces a new scope exception for certain contracts whose terms are linked to the specific operations or activities of one of the contracting parties and clarifies that share-based noncash consideration received from a customer should initially be accounted for under Topic 606 until the right to that consideration becomes unconditional. The guidance is intended to simplify the application of derivative accounting and reduce diversity in practice for share-based customer consideration.First quarter of 2027, with early adoption permittedWe currently do not have any transactions that fall under the scope of this ASU.In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. The ASU simplifies the accounting for internal-use software by removing the prescribed project stages and requiring capitalization of costs once management authorizes the project, commits funding, and determines completion is probable. It also brings website development costs under the same guidance and aligns related disclosures with those for property, plant and equipment. First quarter of 2028, with early adoption permittedWe are not planning on early adoption and this guidance is not expected to have a material impact on our consolidated financial statements.In July 2025, the FASB issued ASU 2025-05, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, which simplifies the estimation of expected credit losses applied to revenue transactions from contracts with customers (pursuant to Topic 606). The ASU provides for the election of a practical expedient to assume that current conditions as