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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