5.6 - Troubled Debtrestructuring & Extinguishmet Flashcards

1
Q

For transfer of assets, how does the debtor calculate the gain or loss on disposal of asset?

A

FV of asset transferred - NBV of asset transferred

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2
Q

For assets transferred, how does the debtor calculate the gain on restructuring?

A

Carrying value of the payable - fair value of asset transferred

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3
Q

The gain or loss on extinguishment of debt before maturity is calculated as:

A

Reacquisition price - net carrying amount

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4
Q

How is the net carrying amount calculated to use in the calculation for gain or loss on extinguishment of debt?

A

=face value - unamortized discount OR + unamortized premium - unamortized issuance cost

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