This Subsection provides the following disclosure guidance for receivables, off-balance-sheet credit exposures, and foreclosed and repossessed assets:
- a
Accounting policies for loans and trade receivables
- b
Assets serving as collateral
- c
- d
- e
Foreclosed and repossessed assets
- f
- g
- h
- i
Risks and uncertainties
- j
- k
- l
Modifications.
The allowance for credit losses and, as applicable, any unearned income, any unamortized premiums and discounts, and any net unamortized deferred fees and costs, shall be disclosed in the financial statements.
Paragraph 310-10-45-3 states that foreclosed and repossessed assets included in other assets on the statement of financial position shall have separate disclosures in the notes to financial statements. An entity shall also disclose the carrying amount of foreclosed residential real estate properties held at the reporting date as a result of obtaining physical possession in accordance with paragraphs 310-20-40-6 and 310-20-55-18F. (P) December 16, 2027; (N) December 16, 2028
270-10-65-1Paragraph 310-10-45-3 states that foreclosed and repossessed assets included in other assets on the statement of financial position shall have separate disclosures in the notes to financial statements. For interim and annual reporting periods, an entity shall also disclose the carrying amount of foreclosed residential real estate properties held at the reporting date as a result of obtaining physical possession in accordance with paragraphs 310-20-40-6 and 310-20-55-18F.Certain loans and trade receivables have contractual terms that expose entities to risks and uncertainties that fall into one or more categories, as discussed in paragraph 275-10-50-1. See Section
275-10-50 for disclosure guidance related to those products.
Section
825-10-50 provides guidance on the required disclosure of fair values of certain assets and liabilities.
Paragraph 825-10-50-8 explains that, for trade receivables and payables, no disclosure is required under that Subtopic if the trade receivable or payable is due in one year or less. An entity shall disclose the recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process according to local requirements of the applicable jurisdiction.
(P) December 16, 2027; (N) December 16, 2028
270-10-65-1For interim and annual reporting periods, an entity shall disclose the recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process according to local requirements of the applicable jurisdiction.As of the date of each balance sheet presented, a creditor shall disclose, either in the body of the financial statements or in the accompanying notes, the amount of commitments, if any, to lend additional funds to debtors experiencing financial difficulty for which the creditor has modified the terms of the receivables in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, or a term extension in the current reporting period. For purposes of this disclosure, covenant waivers and modifications of contingent acceleration clauses would not be considered term extensions.
The guidance in paragraphs does not apply to the following financing receivables:- a
Receivables measured at fair value with changes in fair value reported in earnings
- b
Receivables measured at lower of amortized cost basis or fair value
- c
Except for credit card receivables, trade accounts receivable that have both of the following characteristics:
- 1
They have a contractual maturity of one year or less.
- 2
They arose from the sale of goods or services.
- d
Participant loans in defined contribution pension plans.
(P) December 16, 2026; (N) December 16, 2026
105-10-65-10The guidance in paragraphs does not apply to the following financing receivables:- a
Receivables measured at fair value with changes in fair value reported in earnings
- b
Receivables measured at lower of amortized cost basis or fair value
- c
Except for credit card receivables, trade accounts receivable that have both of the following characteristics:
- 1
They have a contractual maturity of one year or less.
- 2
They arose from the sale of goods or services.
- d
Participant loans in defined contribution pension plans
- e
Lease receivables arising from sales-type leases or direct financing leases.
The disclosures required in paragraphs are applicable regardless of whether a modification of a receivable to a debtor experiencing financial difficulty results in a new loan in accordance with paragraphs . As a practical expedient, an entity may exclude the accrued interest receivable balance that is included in the amortized cost basis of financing receivables for the purposes of the disclosure requirements in Subtopic 326-20. If an entity has applied that practical expedient, an entity may do the same for the disclosures in paragraphs and shall disclose the total amount of accrued interest excluded from the disclosed amortized cost basis. (P) December 16, 2027; (N) December 16, 2028
270-10-65-1The disclosures required in paragraphs are applicable regardless of whether a modification of a receivable to a debtor experiencing financial difficulty results in a new loan in accordance with paragraphs . As a practical expedient, an entity may exclude the accrued interest receivable balance that is included in the amortized cost basis of financing receivables for the purposes of the disclosure requirements in Subtopic 326-20. If an entity has applied that practical expedient, an entity may do the same for the disclosures in paragraphs and shall disclose the total amount of accrued interest excluded from the disclosed amortized cost basis in interim and annual reporting periods. For each period for which a statement of income is presented, an entity shall disclose the following information related to modifications of receivables that are in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, or a term extension (or a combination thereof) made to debtors experiencing financial difficulty during the reporting period:- a
By class of financing receivable, qualitative and quantitative information about:
- 1
The types of modifications utilized by an entity, including the total period-end amortized cost basis of the modified receivables and the percentage of modifications of receivables made to debtors experiencing financial difficulty relative to the total period-end amortized cost basis of receivables in the class of financing receivable.
- 2
The financial effect of the modification by type of modification, which shall provide information about the changes to the contractual terms as a result of the modification and shall include the incremental effect of principal forgiveness on the amortized cost basis of the modified receivables, as applicable, or the reduction in weighted-average interest rates (versus a range) for interest rate reductions.
- 3
Receivable performance in the 12 months after a modification of a receivable made to a debtor experiencing financial difficulty.
- b
By portfolio segment, qualitative information about how those modifications and the debtors’ subsequent performance are factored into determining the allowance for credit losses.
(P) December 16, 2027; (N) December 16, 2028
270-10-65-1For each interim and annual reporting period for which a statement of income is presented, an entity shall disclose the following information related to modifications of receivables that are in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, or a term extension (or a combination thereof) made to debtors experiencing financial difficulty during the reporting period:- a
By class of financing receivable, qualitative and quantitative information about:
- 1
The types of modifications utilized by an entity, including the total period-end amortized cost basis of the modified receivables and the percentage of modifications of receivables made to debtors experiencing financial difficulty relative to the total period-end amortized cost basis of receivables in the class of financing receivable.
- 2
The financial effect of the modification by type of modification, which shall provide information about the changes to the contractual terms as a result of the modification and shall include the incremental effect of principal forgiveness on the amortized cost basis of the modified receivables, as applicable, or the reduction in weighted-average interest rates (versus a range) for interest rate reductions.
- 3
Receivable performance in the 12 months after a modification of a receivable made to a debtor experiencing financial difficulty.
- b
By portfolio segment, qualitative information about how those modifications and the debtors’ subsequent performance are factored into determining the allowance for credit losses.
Receivables may be modified in more than one manner. An entity that modifies the same receivable in more than one manner shall provide disclosures sufficient for users to understand the different types of combinations of modifications provided to borrowers. For example, a receivable may be modified to provide both principal forgiveness and an interest rate reduction. In that case, an entity shall disclose the period-end amortized cost basis of that receivable in a separate category that reflects that a combination of modification types has been granted. If another receivable was modified to provide both an interest rate reduction and a term extension, the period-end amortized cost basis of that receivable shall be presented in a different category. Multiple separate combination categories may be necessary if significant. The same receivable’s period-end amortized cost basis shall not be presented in multiple categories.
(P) December 16, 2027; (N) December 16, 2028
270-10-65-1Receivables may be modified in more than one manner. An entity that modifies the same receivable in more than one manner shall provide disclosures in interim and annual reporting periods sufficient for users to understand the different types of combinations of modifications provided to borrowers. For example, a receivable may be modified to provide both principal forgiveness and an interest rate reduction. In that case, an entity shall disclose the period-end amortized cost basis of that receivable in a separate category that reflects that a combination of modification types has been granted. If another receivable was modified to provide both an interest rate reduction and a term extension, the period-end amortized cost basis of that receivable shall be presented in a different category. Multiple separate combination categories may be necessary if significant. The same receivable’s period-end amortized cost basis shall not be presented in multiple categories. For each period for which a statement of income is presented, an entity shall disclose the following information about financing receivables that had a payment default during the period and had been modified in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, or a term extension (or a combination thereof) within the previous 12 months preceding the payment default when the debtor was experiencing financial difficulty at the time of the modification:- a
By class of financing receivable, qualitative and quantitative information about those defaulted financing receivables, including the following:
- 1
The type of contractual change that the modification provided
- 2
The amount of financing receivables that defaulted, including the period-end amortized cost basis for financing receivables that defaulted.
- b
By portfolio segment, qualitative information about how those defaults are factored into determining the allowance for credit losses.
(P) December 16, 2027; (N) December 16, 2028
270-10-65-1For each interim and annual reporting period for which a statement of income is presented, an entity shall disclose the following information about financing receivables that had a payment default during the period and had been modified in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, or a term extension (or a combination thereof) within the previous 12 months preceding the payment default when the debtor was experiencing financial difficulty at the time of the modification:- a
By class of financing receivable, qualitative and quantitative information about those defaulted financing receivables, including the following:
- 1
The type of contractual change that the modification provided
- 2
The amount of financing receivables that defaulted, including the period-end amortized cost basis for financing receivables that defaulted.
- b
By portfolio segment, qualitative information about how those defaults are factored into determining the allowance for credit losses.
If the debt has been previously restructured, an entity shall consider the cumulative effect of past restructurings made within the 12-month period before the current restructuring when determining whether a delay in payment resulting from the current restructuring is insignificant.