Defining Issues | November 2021

 

Insight

FASB proposes amendment on TDRs and vintage disclosures

Proposed ASU would eliminate TDR recognition and measurement guidance for creditors, and require new disclosures.

For entities that have adopted the credit impairment standard, the proposed ASU would eliminate troubled debt restructuring recognition and measurement guidance for creditors, and require new disclosures.

Applicability

  • Entities that have adopted the credit impairment standard (ASU 2016-13)

Relevant dates

  • November 23, 2021 – FASB issued proposed ASU
  • December 23, 2021 – Comments due

Key impacts

The proposed ASU would:

  • Eliminate the requirement for creditors to recognize and measure certain modifications as troubled debt restructurings.
  • Enhance the disclosure requirements for loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty.
  • Require public business entities to disclose current-period gross writeoffs by year of origination for the related financing receivables and net investments in leases.  

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