TDRs are gone – now what? What you need to know about ASU 2022-02

Mandi Simpson and Sydney Garmong
On March 31, 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2022-02, eliminating the troubled debt restructuring (TDR) accounting model. What’s next for institutions that are not certain how to move away from TDRs? Our accounting advisory team offers direction. In this webinar, we’ll provide an overview of the new ASU and compare and contrast the new ASU with the old TDR standard. We’ll do a deep dive into the new disclosure requirements for loans to borrowers in financial distress and flag some operational considerations as well as items that might be of interest to investors. Lastly, we’ll revisit the guidance on evaluating if a modification is a new loan or continuation of an existing loan, as this preexisting guidance takes on additional importance with the new ASU.
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