Accounting for Troubled Debt Restructuring

Meeting the Demands of SFAS 15 and 114 in an Ailing Economy

Recording of a 100-minute CPE webinar with Q&A

Conducted on Thursday, March 26, 2009

Course Materials

This seminar will prepare accounting professionals to meet FASB troubled debt restructuring standards under SFAS 15 and SFAS 114 across a diverse range of industries and debt structures.


The economic crisis is forcing companies in a multitude of industries to restructure debts and renegotiate loans. Accounting professionals must be prepared to help their clients account for troubled debts under SFAS 15 and 114 and adjust compliance procedures for future troubled debt restructuring.

The FASB standards impact a number of financial transactions — asset transfers from foreclosures, conversions of debt into an equity interest, any modification of loan terms (commercial and residential).

Recent actions from FASB's Center for Audit Quality, including a December 2008 white paper on accounting for troubled mortgage loans, suggest that further attention to debt restructuring is warranted. Preparation now will help companies and accountants meet current and future standards effectively.

Listen as our panel of accounting experts bottom-lines FASB's troubled debt restructuring standards and guidance.



  1. SFAS 15 For Troubled Debt Restructuring By Debtors And Creditors
    1. What activities constitute a TDR?
    2. Identifying and accounting for loan modifications
  2. Best Practices For Measuring Impairment Under SFAS 114
    1. Measuring impairment under one of the three separate methods
      1. Observable market price
      2. Fair value of collateral
      3. Present value of cash flow
  3. Related Guidance From FASB On Troubled Debt Restructuring
    1. EITF 02-4 and additional guidance for identifying TDRs
    2. CAQ white paper on residential mortgage loans
    3. Other relevant EITF issues
    4. Modifications under SFAS 91
  4. Practical Examples And Accounting Strategies For Restructured Debts


The panel will review and analyze the various GAAP standards for troubled debt restructuring and provide:

  • In-depth review of aspects of SFAS 15 most relevant in today's market.
  • Best practices to measure impairment under the three methods of SFAS 114.
  • Analysis of related guidance, including EITF 02-4 and the CAQ white paper.
  • Practical approaches to TDR accounting for advising debtors and creditors.


Michael Therrien
Michael Therrien

Managing Director
Primatics Financial

He is the co-founder of the firm, with 11 years of experience in audit and advisory to the financial services industry....  |  Read More

Thomas Adams
Thomas Adams
Director, Transaction Services

He has over 17 years of accounting and advisory experience, including ten years in the mortgage banking industry, where...  |  Read More

Hugh Guyler
Hugh Guyler
Deloitte & Touche

He is the leader of the Banking Industry section within the firm's Audit/Enterprise Risk Services Practice. He sits on...  |  Read More

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