Ch 14 Append. + IFRS Insights Flashcards Preview

Financial Acct Systems 2 > Ch 14 Append. + IFRS Insights > Flashcards

Flashcards in Ch 14 Append. + IFRS Insights Deck (10):
0

Troubled debt restructuring

Occurs when creditor grants a concession to debtor it
Wouldn't otherwise consider

1

IFRS generally assumes that all restructurings be accounted for as...

Extinguishments of debt

2

Troubled debt restructuring: involves 1 of 2 basic types of transactions, name both

1 settlement of debt at less than its carrying amount

2'continuation of debt with modification of terms

3

How should a creditor account for issuance of debtor's stock or transfer of noncash assets during a settlement of debt?

Should account for noncash assets and equity interest
received at fair value

4

Similarities IFRS + GAAP: liabilities

Similar, definitions, accounting and classified as current
And non current

5

IFRS VS GAAP: amortization of bond discounts or premiums

IFRS must use effective interest method

GAAP prefers effective interest method, but also permits
Straight line method

6

IFRS: net amounts

IFRS does not use bond premiums or discounts but
Shows bonds at their net amounts

7

GAAP VS IFRS: bond issue costs

GAAP: recorded as asset

IFRS: bond issue costs are netted against carrying amount
Of bonds

8

GAAP VS IFRS: restructuring terms

GAAP uses term troubled debt restructurings and has
Developed specific guidelines related to loan categories

IFRS assumes all restructurings will be accounted for as
Extinguishments of debt

9

IFRS VS GAAP: accounting for liability and expense when contract is onerous

IFRS: must be recognized under IFRS

GAAP: losses on onerous contracts generally not recognized
Unless addressed by industry or transaction specific
requirements