ASU 2011–01

FASB issued Accounting Standards Update Receivables (Topic 310) Deferral of the Effective Date of Disclosures about Troubled Debt Restructurings in Update No. 2010-20 in January 2011.

If you’ve been keeping track of ASUs you know the FASB issued 29 ASUs in 2010. In January 2011, FASB issued the first ASU of 2011. ASU 2011-01 was issued because of stakeholder concerns about new disclosure requirements in paragraphs 310-10-50-31 through 50-34 of the FASB Accounting Standards Codification® about troubled debt restructurings in one reporting period followed by a change in what constitutes a troubled debt restructuring shortly thereafter would be burdensome for preparers and may not provide financial statement users with useful information. They asked the Board to defer the effective date of the disclosure requirements for public entities about troubled debt restructurings in ASU No. 2010-20, Receivables (Topic 310): Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses, to be concurrent with the effective date of the guidance for determining what constitutes a troubled debt restructuring, as presented in proposed ASU, Receivables (Topic 310): Clarifications to Accounting for Troubled Debt Restructurings by Creditors.

FASB therefore issued this ASU. The amendments delay indefinitely the effective date of the disclosures about troubled debt restructurings in Update 2010-20 for public entities. The delay is intended to allow the Board time to complete its deliberations on what constitutes a troubled debt restructuring.

The effective date of the new disclosures about troubled debt restructurings for public entities and the guidance for determining what constitutes a troubled debt restructuring would then be coordinated. Currently, that guidance is anticipated to be effective for interim and annual periods ending after June 15, 2011.

Accounting Standards Updates are available for download from the FASB's website, http://www.fasb.org/.

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