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Heads Up — Frequently asked questions about troubled debt restructurings under the CARES Act and interagency statement

Published on: 11 Jan 2021

This Heads Up provides answers to various questions about temporary relief from the accounting and disclosure requirements in U.S. GAAP for troubled-debt restructurings that entities have been offered under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) and the “interagency statement” issued by a group of banking regulators.

Originally issued on 15 April 2020, this Heads Up has been updated several times to reflect recent developments related to the CARES Act. The 8 July 2020 update (1) adds Q&As on the application of CARES Act/interagency guidance to interest rate modifications to loans and (2) amends a Q&A on the recognition of interest income on modified loans if interest does not accrue on deferred payment obligations of the borrower. The 11 January 2021 update reflects certain provisions of the Consolidated Appropriations Act, 2021, that extend relief offered under the CARES Act related to troubled debt restructurings as a result of COVID-19.


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