On March 31, 2022 FASB issued an ASU with the intentions of improving the decision usefulness of information provided to key stakeholders about certain loan refinancing’s, restructurings, and write-offs.
1. Troubled Debt Restructurings
Recognition and Measurement of TDRs has been eliminated, while enhancing the disclosure requirements for certain loan refinancing’s and restructurings. For entities that have adopted CECL, the amendment is effective for fiscal years beginning after December 15, 2022. For all others, the amendment has the same effective date as CECL adoption. For the transition method related to the recognition and measurement of TDRs, an entity has the option to apply a modified retrospective transition method, resulting in a cumulative-effect adjustment to retained earnings in the period of adoption. Early adoption is permitted.
2. Vintage Disclosures
Current-period gross writeoffs by year of origination are now required in the vintage disclosure. For entities that have adopted CECL, the amendment is effective for fiscal years beginning after December 15, 2022. For all others, the amendment has the same effective date as CECL adoption. Early adoption is permitted.
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You can also read the FASB meeting minutes here.