Accounting for Exit or Disposal Activities, Debt Modifications & Contingencies


The financial accounting and reporting rules for costs associated with exit or disposal activities, like plant shutdowns, one-time involuntary termination benefits and contract terminations, can be confusing. At the same time, companies often have to restructure and modify their existing debt agreements with creditors as a result of financial difficulties. This seminar will:

  • Explain the accounting and disclosure rules for costs related to exit and disposal activities that are not part of an ongoing benefit arrangement required by ASC 420
  • Update you on SEC rules related to restructuring charges
  • Review the accounting rules for debt modifications with creditors
  • Share the disclosure reporting requirements for disposals of components of an entity required by ASC 360, and the new definition of discontinued operations
  • Provide current guidance for accounting for contingencies
  • Summarize new rules on going-concern disclosures required in ASC Topic 205
  • Review IFRS accounting and disclosure rules for restructuring costs in scope of IAS 37 and employee termination benefits accounted under IAS 19

To update financial professionals on the accounting rules when companies have costs associated with plant shutdowns, involuntary employee terminations and contract terminations. In addition, this seminar will review current guidance for debt modifications and accounting for contingencies, and help you gain an understanding of current rules with examples and case studies.

  • Guidance for accounting for exit or disposal obligations
    – When to recognize a liability within the scope of ASC 420
    – One-time involuntary employee termination benefits
    – Contract termination costs that are not leases
    – Costs to close facilities and relocate employees
  • SEC requirements for accounting and disclosure around restructuring activities, business combinations and asset impairment charges
  • Accounting and disclosure requirements for debt modification (ASC 470-60)
    – Troubled Debt Restructuring (TDR) case studies and journal entry examples
  • Amendments in ASU 2014-08 to ASC Topic 360
    – Disclosure requirements for disposals of components of an entity
    – Criteria for reporting discontinued operations
  • Accounting for contingent liabilities, guarantees, and asset retirement obligations in ASC 450, ASC 460 and ASC 410
  • IAS 37 rules and significant differences with US GAAP in ASC 420
  • IFRS accounting and disclosure rules for restructuring costs in employee termination benefits accounted under IAS 19
    – When and how does a company record a liability and expense for employee termination benefits



No advance preparation required.

Level of Knowledge: 


CPE Credit: 
NASBA Field of Study: