FASB Issues Proposal on Troubled Debt Restructurings by Creditors and Vintage Disclosures

The FASB has issued a proposed Accounting Standards Update (ASU), Troubled Debt Restructurings and Vintage Disclosures. The proposed ASU would “eliminate the accounting guidance for TDRs by creditors while enhancing disclosure requirements for loan refinancings and restructurings by creditors made to borrowers experiencing financial difficulty” and would “require that a public business entity disclose current-period gross writeoffs by year of origination for financing receivables and net investment in leases.”

The proposed ASU reflects concerns brought up by stakeholders during the FASB’s post-implementation review of the credit losses standard. Comments on the proposed ASU are due by December 23, 2021. For more information, see the press release on the FASB’s Web site.