CPEA Alert: ASU 2022-02- Amendments Related to the Credit Losses Standard

On March 28, 2022, the FASB issued Accounting Standards Update (ASU) 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The amendments in ASU 2022-02 relate to the adoption of the amendments in ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and respond to feedback received from stakeholders who have been implementing ASU 2016-13. ASU 2016-13 substantially changes existing U.S. generally accepted accounting principles (U.S. GAAP) on credit losses