Accounting for Debt Restructuring during Uncertain Financial Times Self-Study Webinar (2.5 Hours)


Due to COVID-19, many companies today are experiencing financial difficulties and will not be able to meet their loan covenants or cash flow requirements under their current loan arrangements. As a result, many debtors will restructure their loans with their creditors by extending payment terms, lowering the interest rate, or agreeing to a reduction in the principal amount owed.

This self-study webinar will explain in detail the accounting for debt restructurings, as well as provide thorough examples of realistic potential situations that may arise as a result of these unpredictable and tumultuous times.


To analyze how complicated and unpredictable financial situations (such as the COVID-19 crisis) can require changes in how to handle the accounting of debt restructuring from the perspective of both debtors and lenders.

  • ASC Subtopic 470-60 Debt-Troubled Debt Restructuring by Debtors
  • ASC Subtopic 470-50 Debt-Modifications and Extinguishments
  • Brief comparison to IFRS 7
  • Debt issue costs
  • Financial difficulty indicators
  • Settling troubled debt
  • Interest on contingent payments
  • Borrowing capacity

Recognize the appropriate accounting model for a restructured loan from the perspective of the debtor

Recognize the debtor’s accounting treatment when a loan is restructured with the original creditor

Recognize the circumstances under which a modification of a debt is considered to be a troubled debt restructuring (TDR)

Recognize the relationship between troubled debt restructurings and the CECL model

Identify the tests used to distinguish a loan modification from a loan extinguishment

Identify the accounting for a loan modification




No advance preparation required.

Level of Knowledge: 


CPE Credit: 
NASBA Field of Study: