FASB Issues Update Related to the Credit Losses Standard

The FASB has issued Accounting Standards Update (ASU) No. 2022-02, Troubled Debt Restructurings and Vintage Disclosures. The ASU updates the requirements for accounting for credit losses under ASC 326, eliminates the accounting guidance on troubled debt restructurings for creditors in ASC 310-40, and enhances creditors’ disclosure requirements related to loan refinancings and restructurings for borrowers experiencing financial difficulty. The ASU also amends the guidance on “vintage disclosures” to require disclosure of gross write-offs by year of origination.

For more information, see the press release on the FASB’s Web site.