Description
This course provides an overview of the accounting guidance for debt modifications and exchanges under ASC 470-50. It begins with the framework for determining whether a change in debt terms results in an extinguishment and covers key concepts such as debtor and creditor identification, transactions involving third party intermediaries, and the 10% cash flow test. The course also discusses how to evaluate fees and costs related to debt modifications, including fees between debtors and creditors, third party costs, and modifications to revolving debt arrangements. Throughout, you’ll gain practical insight into how to assess whether a debt modification results in extinguishment accounting or continued accounting for the existing debt arrangement.
Learning Objectives
Upon completion of this course, you will be able to:
• Identify the scope and application of ASC 470 50 for debt modifications and exchanges
• Determine whether a debt modification or exchange results in an extinguishment
• Recognize the factors used to evaluate debtor, creditor, and third party intermediary relationships
• Determine how to apply the 10% cash flow test for debt modifications and exchanges
• Identify the accounting treatment for fees, costs, and revolving debt arrangements
To complete this course participants need to: Read the material provided and answer chapter review questions, successfully complete the qualified assessment with a minimum of 70% accuracy to receive your certificate.
A course evaluation form is provided for your feedback, upon course completion. Participants have 1 year from the date of purchase/enrollment to complete this course
Our Refund policy can be found at: https://cpeprime.com/cancellation-and-refund/