Troubled Debt Restructurings: Considerations for Creditors
Over the past couple of years, the U.S. Financial Accounting Standards Board (FASB) has issued guidance on several matters related to troubled debt restructurings (TDRs). These FASB updates significantly amended the required disclosures surrounding a company’s troubled assets and also provided guidance to assist creditors in determining when a debt restructuring represents a TDR. As a consequence – and considering the increase in debt modifications over the past few years as a result of economic conditions – we have found that some companies are looking for a summary of the financial reporting implications associated with TDRs.
Deloitte’s publication, Troubled debt restructurings: Considerations for creditors, provides readers with a basic understanding of the financial reporting implications associated with TDRs. The focus of this publication is on accounting for TDRs from the perspective of the creditor and discusses:
• How a creditor determines when a restructuring meets the definition of a TDR
• The accounting for TDRs by creditors
• Presentation and disclosure matters related to TDRs
Please download the publication below as you attempt to understand – and, most importantly, apply – the ins and outs of accounting for troubled debt restructurings.
As used here, “Deloitte” means Deloitte & Touche LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.