New Disclosures on Tap for Banks Giving Breaks to Borrowers

If U.S. accounting rulemakers get rid of long-standing requirements for troubled debt restructurings, banks may have to offer new, detailed disclosures about how they helped their borrowers.

Future footnote disclosures could include information about the types of loan modifications banks offered struggling customers, how many breaks they gave, and how the subsequent performance of those loans factored into bank calculations of expected credit losses, FASB member Sue Cosper said Tuesday at an American Institute of CPAs banking conference.

Many banks voluntarily have offered this information during the coronavirus pandemic, even though regulators and lawmakers suspended accounting rules around loan ...