2 thoughts on “How Troubled Debt Restructuring Accounted?”

  1. It’s really a judgement call. If your restructuring the debt then you definitely need to evaluate if it’s a TDR. Look at the new (restructured) terms of the loan. Is the borrower having financial trouble (inability to make payments, slow payments, deteriorated financial condition). If so, have you really given up anything? Even if it is the exact same interest rate it could be considered a TDR if the current market rate is higher. This is not easy. Proper training of personnel is really needed to identify these.

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