Accounting for Troubled-Debt Restructures: A Crash Course

In the waning days of 2009, the evidence is mounting that loan losses in credit unions have reached historic levels, and have contributed significantly to earnings degradation and capital erosion. Whether your credit union is in the sand states or just feeling the general effects of this severe recession, most likely you have regulators and auditors demanding ever-increasing adjustments to the Allowance for Loan Losses (ALL).

 
 

In the waning days of 2009, the evidence is mounting that loan losses in credit unions have reached historic levels, and have contributed significantly to earnings degradation and capital erosion. Whether your credit union is in the sand states or just feeling the general effects of this severe recession, most likely you have regulators and auditors demanding ever-increasing adjustments to the Allowance for Loan Losses (ALL).

Mike Sacher, CPA, has consulted with many large credit unions across the country over the past 18 months on ALL strategy. In the course of that time, he learned some important lessons about methodologies for managing the ALL. The first step is understanding impairment and how to account for Troubled Debt Restructures (TDRs).

To assist all credit unions in understanding this difficult subject, CUtv produced a 20-minute event with Mike Sacher to walk through the accounting for TDRs. He’s hosted three recent events on CUtv, with viewers offering comments like:

This was the best explanation of ALL/TDR and qualitative and environmental factors I've heard. Mike did a fantastic job.

 

 

 

 

Jan. 14, 2010


Comments

 
 
 

No comments have been posted yet. Be the first one.