FASB Modifies TDR Guidance and Enhances Disclosures

FASB Modifies TDR Guidance and Enhances Disclosures

The Financial Accounting Standards Board (FASB) recently issued new guidance that makes several important changes to the accounting treatment for troubled debt restructurings (TDRs).

Following feedback received during a post-implementation review of ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, the board issued ASU 2022-02, which eliminates accounting guidance for TDRs by creditors, while also enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when borrowers are experiencing financial difficulty.

The amendments also require an entity to disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases.

For entities that have already adopted ASU 2016-13, the amendments in ASU 2022-02 are effective for fiscal years beginning after Dec. 15, 2022, including interim periods within those fiscal years.

For entities that have not yet adopted ASU 2016-13, the effective dates for the amendments are effective upon adoption of ASU 2016-13.

Early adoption is permitted. 


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FASB Modifies TDR Guidance and Enhances Disclosureshttps://www.cbiz.com/Portals/0/Images/Hero-FSABModifiesTDR.jpg?ver=Dzlutkk3l7eXIzFjFlZuJg%3d%3dhttps://www.cbiz.com/Portals/0/Images/Thumbnail-FSABModifiesTDR.jpg?ver=x3Lbr6pv65ti7NoDiPKNXg%3d%3dThe Financial Accounting Standards Board (FASB) recently issued new guidance that makes several important changes to the accounting treatment for troubled debt restructurings (TDRs). 2022-06-21T17:00:00-05:00

The Financial Accounting Standards Board (FASB) recently issued new guidance that makes several important changes to the accounting treatment for troubled debt restructurings (TDRs). 

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