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 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
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Borrowing capacity