The Financial Accounting Standards Board has updated its guidance on troubled debt restructurings (TDRs) to provide lenders some uniformity in accounting for government-backed mortgages upon foreclosure. The changes to FASB’s rule, “Receivables – Troubled Debt Restructurings by Creditors,” affect FHA and VA lenders and would take effect for public entities with reporting periods after Dec. 15, 2014. All other entities will have to comply after Dec. 15, 2015. “In addition to accounting consistency, the updated rule provides greater certainty as to the amount that can be expected to recover through the government guarantees,” the board said. The changes became necessary because the accounting varied among lenders, resulting in diverse practices, according to the Emerging Issues Task Force, which promulgates implementation guidance within the ...