The Financial Accounting Standards Board (FASB) on Thursday finalized amendments to its credit losses standard aimed at enhancing loan modification and writeoff disclosures.

The updates to Accounting Standards Codification Topic 326, commonly referred to as CECL, were proposed by FASB in November after the organization received feedback from stakeholders during a virtual roundtable in May. CECL took effect for public companies (excluding smaller reporting companies) fiscal years beginning after Dec. 15, 2019, and those to implement the standard observed accounting rules related to troubled debt restructuring (TDR) could benefit from additional guidance.

Thursday’s update eliminates accounting guidance for TDRs by creditors in Subtopic 310-40 (Receivables—Troubled Debt Restructurings by Creditors). Instead, an entity should apply the loan refinancing and restructuring guidance in paragraphs 310-20-35-9 through 35-11 to determine whether a modification results in a new loan or a continuation of an existing loan.

The update also clarifies current-period gross writeoffs be disclosed by year of origination for financing receivables and net investment in leases—another area of confusion cited by stakeholders under the original standard.

“The new [accounting standards update] responds to feedback we received from investors and other stakeholders during our extensive post-implementation review of the credit losses standard,” said FASB Chair Richard Jones in a press release. “The amendments create a single model for loan modification accounting by creditors while providing improved loan modification and writeoff disclosures.”

The amendments are effective for public companies that have already adopted the standard for fiscal years beginning after Dec. 15, 2022, including interim periods within those fiscal years. For all other entities, the update is effective at the same time as adoption of the standard: currently fiscal years beginning after Dec. 15, 2022.