Insight

CECL and troubled debt restructurings

Implications of new TDR guidance

Chris Boyles

Chris Boyles

Partner, Risk Analytics, KPMG US

+1 213-955-8484

Mario Mastrantoni

Mario Mastrantoni

Partner, Accounting Advisory Services , KPMG LLP

980-297-6079

Reza van Roosmalen

Reza van Roosmalen

Accounting Change Services Lead, KPMG US

+1 212-954-6996

Emily De Revere

Emily De Revere

Director, Accounting Advisory, KPMG US

+1 617-988-5708

The Financial Accounting Standards Board recently issued an Accounting Standards Update that amends guidance related to troubled debt restructurings (TDR) for creditors and vintage disclosures required under CECL. For affected institutions, the amendments compel advanced planning—now.

In Implications of new TDR guidance under CECL, KPMG explains that these amendments may both simplify some processes and introduce new complexities in others. Key implications include loan modification accounting, impact on CECL estimation models, and enhanced disclosures.