Troubled Debt Restructurings (TDRs) and Impairment Calculations pursuant to ASC 310 (FAS 114)

TValue™ Loan Modification and Amortization Software is an excellent tool to easily and quickly handle your Troubled Debt Restructurings including Day 2 accounting (accretion).

Calculating accurate TDR provisions for Allowance for Loan Losses (ALL) / Allowance for Loan and Lease Losses (ALLL) is a critical component for regulatory and financial statement disclosures and requires calculating the net present value (NPV) of expected future cash flows in accordance with ASC 310 (FAS 114, Accounting by Creditors for Impairment of a Loan).

If your current loan modification and TDR software tool(s) is formula driven, time consuming, hard to use, or does not produce adequate documentation, it is time to consider TimeValue Software™ TValue loan modifications and amortization software. TValue software is the industry leader for accurately amortizing loans, calculating leases, and handling any time value of money calculation. TValue software is used and is highly recommended by many of the CPAs servicing the financial institution industry.

TValue software allows you to fully understand the financial impact of a TDR before closing a transaction. With TValue software, you can calculate the net present value (NPV) of expected future cash flows at the effective interest rate to determine the allowance for loan loss in seconds. Easily create multiple "what-if" scenarios of a loan you are restructuring/modifying before determining which is best for the borrower as well as the institution. You can then produce the appropriate documentation with professional amortization schedules for full accountability and support that will also allow you to handle your Day 2 accounting (accretion) entries.

See how Easy it is to Calculate the ALLL on a TDR with TValue Software

TimeValue Software understands that Credit Unions, Banks, and other lending institutions need to modify loans to meet their customers/members needs.

Click on the video below to see a case study of a "Straight Interest Rate Reduction" to see how quick and easy TDR calculations can be with TValue software.

TValue Software TDR Straight Interest Rate Reduction Training Video

Troubled Debt Restructuring is Simple as 1-2-3-4

Working with Credit Unions and Banks, CPA firms, and the regulators, TimeValue Software has developed an easy 4-step process and supportable methodology to ensure that Financial Institutions can fully understand the magnitude of a possible loss and consider alternatives to mitigate the loss before finalizing their TDR. This 4-step process has also been very popular with the CPAs and Examiners when they are doing their audits.

The 4-Step Process

Step 1: In TValue software, create the new loan modification (TDR) to determine the expected future cash flows, or re-create the modification from the loan agreement to determine the expected future cash flows. Please note you should match the payments and dates if you are working from the agreement.

Step 2: Calculate the NPV of the expected future cash flows at the effective (contractual) interest rate. We use the cash flows from the TDR schedule created in Step 1 to build the NPV schedule.

Step 3: The ALLL is simply the difference between the TDR loan amount (step 1) and the NPV loan amount (step 2).

Step 4: Create a master schedule for the Day 2 accounting or monthly accretion. Assuming payments are made on a timely schedule, the interest differential each month is the monthly accretion. You can also use the balances of TDR schedule and the NPV schedule at each date to determine the new ALLL and then make the appropriate adjustments.

We highly recommend that once you start a modification for a borrower/member that has financial difficulty and you know it will be classified as a TDR, to do the NPV calculations and understand the magnitude of the loss before you do the deal. There are different ways to structure a modification to help minimize the loss.

Day 2 Accounting

There are multiple ways to easily do the Day 2 accounting using TValue software. If the borrower has made all of their payments on a timely basis, you can use the information from the TDR and NPV amortization schedules to do the Day 2 accounting entries. If the payments weren’t made or have been different, you can easily structure the remaining term in TValue software and then do the NPV calculation. It only takes a couple of minutes to have the proper numbers to do the accretion adjustments.

Benefits of TValue Software over Excel

Excel is an excellent tool for a lot of things, but when it comes to doing financial calculations TValue software can’t be beat. All you need to do is input a couple of numbers and dates, and TValue software does the calculations for you. There are no formulas to write or review so there is little chance for errors.

  • Faster, more accurate, and easier to use; only a couple of line items needed to structure a deal or do a NPV calculation
  • Calculations are error free as TValue software is based on embedded algorithms, not writing formulas; if the amounts and dates are right, the calculation is right
  • Has the logic to handle irregular payments
  • Generate amortization schedules in seconds; documented schedules are generated for viewing, exporting, and printing immediately
  • Quickly solve for any "what if" calculations; learning how is simple and easy
  • Logic to handle the simple to the most complex calculations
    • Interest only, rate changes, balloons
    • Various year length options (360, 364, 365)
    • Simple and compound interest
    • Various compound or rate period methods
    • Irregular or advance payments
  • Generate APR - Truth in Lending (Reg. Z) disclosures

TValue Calculation Engine SDK

You can easily integrate complex calculations into your applications with the TValue Engine SDK. TimeValue Software now offers the calculation engine from its highly successful TValue amortization software to developers for use in their products. Now, you can put the power of TValue amortization software into applications for a fraction of what it would cost to develop it internally.

For information about the TValue Engine SDK, you can visit our link to TValue Engine web page or call 1-949-727-1800 or 1-800-426-4741 (within USA) or email TimeValue Software for information about a free evaluation copy at

Try TValue Loan Modification and Amortization Software Risk-Free

Learn how TValue amortization software can be an invaluable tool for Credit Unions, Banks, and other financial associations.

If you would like a demonstration of TValue software, please contact TimeValue Software today so you can fully understand the financial impact of TDRs! Call 1-949-727-1800 or toll-free at 1-800-426-4741 (within USA), or email at

All TimeValue Software products include an unconditional one year money-back guarantee.

System Requirements for TValue Software:

  • Supports Windows XP and above and Windows Server 2003 and above - both 32 bit and 64 bit, and Terminal Services
  • Citrix is being used successfully by TimeValue Software customers with no known issues in this environment
  • At least 10MB RAM and 5MB disk space

To Order Now:

  • Go to our order page, or
  • Call 1-949-727-1800 or 1-800-426-4741 (within USA)
 Pricing Options

Licensing Policy

Call for volume license discounts

1-user license $ 149
Annual maintenance service (per user)* $   35

*The TValue software annual maintenance service includes future updates and upgrades, unlimited product support, and access to the 75+ TValue software online training videos.

Still have questions?

Contact us at:
1-800-426-4741 (within USA),
(M-Th 7-6; Fri 7-5 PT)
 TValue software TDRs FAQs
 TDR Webinar Archive