What are disclosure reports?

In July 2010, the Financial Accounting Standards Board (FASB) released a significant update, Accounting Standards Update 2010-20, Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses (Topic 310). More than two years later, however, bankers’ interpretation of this update has been inconsistent and ill effective as a result of the quick implementation goals, the ambiguous descriptions in the update and a lack of FASB-published documentation needed to discern the new requirements. 

The ASU 2010-20 update required supplemental reporting to a financial institutions ALLL calculations. The point of this was to disclose more information about the institution’s loan portfolio. These reports show aging analysis, credit risk, TDR restructure and several other items that help give a better picture of an institution’s loan portfolio. There are roughly 4-7 reports that institutions are currently filing as part of disclosure reporting.

For more in-depth information on disclosure reports, read our whitepaper: “ALLL” about Disclosure Reports.