The Financial Accounting Standards Board this week agreed to add a project to its technical agenda to investigate the suspension of troubled debt restructuring accounting for entities that have adopted the Current Expected Credit Losses accounting standard.
FASB to pursue further CECL improvements
July 16, 2021 / By ICBA
The Financial Accounting Standards Board this week agreed to add a project to its technical agenda to investigate the suspension of troubled debt restructuring accounting for entities that have adopted the Current Expected Credit Losses accounting standard.
The Financial Accounting Standards Board this week agreed to add a project to its technical agenda to investigate the suspension of troubled debt restructuring accounting for entities that have adopted the Current Expected Credit Losses accounting standard.
TDR Project: FASB said the TDR accounting designation and disclosures do not provide stakeholders with valuable information while causing considerable expense for preparers.
TDR Background: TDR accounting has largely been suspended during the pandemic through congressional action and has become a confusing part of loan modification accounting as community banks assist customers.
PCD Project: FASB also agreed to add a project on accounting for impairment of assets acquired in a business combination amid the confusion surrounding purchased credit deteriorated, or PCD, assets.
PCD Frustration: The differences in accounting for PCD and non-PCD assets have caused many stakeholders to express frustration with trying to understand the correct accounting model to apply.
More: FASB also will continue to seek codification improvements in the CECL disclosures surrounding credit loss write-offs and recoveries by year of origination.
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