CUNA backs TDR changes for FIs that have adopted CECL

CUNA supports a proposed accounting standards update from the Financial Accounting Standards Board (FASB), it wrote FASB in late December. The proposed update would eliminate Troubled Debt Restructuring (TDR) accounting requirements for those entities that have adopted the current expected credit loss (CECL) standard.

CECL is an accounting standard that recognizes lifetime expected credit losses.

We believe the TDR designation and disclosure will likely no longer be meaningful after the adoption of [CECL] because lifetime credit losses have already been captured credit losses have already been captured under the current expected credit losses (CECL) model and overlap with certain disclosure requirements,” the letter reads. “


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