FASB eliminates TDR requirements for CECL adoptees
The Financial Accounting Standards Board Wednesday agreed to a CUNA-supported update to the current expected credit loss (CECL) standard. CECL is an accounting standard that recognizes lifetime expected credit losses.
The update eliminates Troubled Debt Restructuring (TDR) accounting requirements for entities upon adoption of the CECL standard, which CUNA supported in a December comment letter to FASB.
“We thank FASB for moving to eliminate the TDR designation, which we believe will no longer be meaningful after the adoption of CECL, as it already accounts for lifetime credit losses,” said CUNA President/CEO Jim Nussle.
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