There were lots of smiles and high-fives when ASU 2022-02 Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures eliminated the requirement for creditors to recognize and measure certain modifications as troubled debt restructurings (TDRs). However, this new standard does not stop at the removal of the term “troubled debt restructurings” from the FASB codification. The standard significantly expands disclosures related to loan modifications involving borrowers experiencing financial difficultly which will require institutions to modify their existing processes and controls in order to track information required for disclosure under ASU 2022-02. Click the button below to learn more.
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The information provided in this communication is of a general nature and should not be considered professional advice. You should not act upon the information provided without obtaining specific professional advice. The information above is subject to change as a result of rapidly evolving legislative developments and government guidance.