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
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
3
Q
The gain or loss on extinguishment of debt before maturity is calculated as:
A
Reacquisition price - net carrying amount
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
