ASU 2022-02 eliminates the requirement for creditors to recognize and measure certain modifications of receivables as troubled debt restructurings, and enhances disclosures about certain modifications of receivables. KPMG answers the questions we have encountered in practice about implementing the new ASU.
|Effective date||Entities that have adopted ASC 326||All other entities|
|Annual and interim periods – Fiscal years beginning after||December 15, 2022||December 15, 2022 (consistent with when the entity first applies ASC 326)|
|Early adoption permitted?||Early adoption is permitted for an entity that has adopted ASC 326. An entity can early adopt the guidance for modified receivables in any interim period, but must apply all of the ASU’s guidance for modified receivables as of the beginning of the fiscal year that includes the interim period.|
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