If yes, TDR accounting is applied. Both IFRS Standards and US GAAP address debt modifications. Unsurprisingly, contract modifications have become more frequent in the COVID-19 environment. But amid all the change, the standard is also flexible, allowing companies to formulate their own approaches and to leverage many existing practices. Interpretation of changing standards . Register early and save! sir frederick barclay wife; steele high school teachers; kpmg debt and equity guide on March 10, 2023 All rights reserved. We offer hands-on assistance in analyzing options, structuring, arranging and achieving financial close across the full spectrum of debt products. For more detail about the structure of the KPMG global organization please visithttps://home.kpmg/governance. Connect with us via webcast, podcast or in person/virtual at industry conferences. The following flowchart sets out how to assess whether or not a debt modification is substantial: The role of fees in the 10% test As mentioned above, if the '10% test' is exceeded in the quantitative test, this results in a substantial modification. All rights reserved. The Guide is designed for use by management1to help address the requirements, needs and objectives for evaluating and assessing an entity's internal control over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act of 2002 and the COSO 2013 Framework published by the Committee of Sponsoring Organizations of the Treadway Explore the topics at the Financial Reporting View. Our new guide explains the measurement and reporting of GHG emissions through the lens of the Greenhouse Gas Protocol. Overview. We use cookies to personalize content and to provide you with an improved user experience. The analysis that generates a smaller change in cash flows forms the basis for determining whether the 10% test is met. But there have been several changes (especially for equity securities) as well as challenges in applying the guidance to new facts and circumstances and new types of investments. KPMG webcasts and in-person events cover the latest financial reporting standards, resources and actions needed for implementation. Discover what makes RSM the first choice advisor to middle market leaders, globally. In-depth analysis, examples and insights to give you an advantage in understanding the requirements and implications of financial reporting issues. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. a partial prepayment), or both. Investment accounting is how we refer to the accounting for debt and equity securities that dont fall under other accounting models, such as the equity method or consolidation. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. +1 310-266-9232. Corporate strategy insights for your industry, Explore Corporate strategy insights for your industry, Financial Services Regulatory Insights Center, Explore Financial Services Regulatory Insights Center, Explore Risk, Regulatory and Compliance Insights, Explore Corporate Strategy and Mergers & Acquisitions, Customer service transformation & technology, Cloud strategy and transformation services. The accounting implications differ depending on whether the borrowers or lenders accounting is being considered. of Professional Practice, KPMG US, Senior Manager, Dept. Recently, Ernst & Young sold its management-consulting business to Cap Gemini Group SA, a large and publicly traded computer services company headquartered in France. Measurement of the debt (i.e. Sharing our expertise and perspective. In this article, we discuss the main differences between the two sets of standards. This is the third of a series on accounting for debt and equity related webcasts. 7. Increased auditing standards, such as SAS Nos. Partner, Accounting Advisory Services, KPMG US. If an exchange of debt instruments or modification of terms is not accounted for as an extinguishment (i.e. Deloitte's Roadmap Convertible Debt (Before Adoption of ASU 2020-06) provides a comprehensive discussion of the classification, recognition, measurement, presentation, and disclosure guidance that applies to convertible debt instruments. KPMG Advisory Podcast Index page. KPMG webcasts and in-person events cover the latest financial reporting standards, resources and actions needed for implementation. Step 1: Identify the contract with the customer. This content outlines initial considerations meriting further consultation with life sciences organizations, healthcare organizations, clinicians, and legal advisors to explore feasibility and risks. Latest edition: Our comprehensive guide to the statement of cash flows, with Q&As and examples to explain key concepts. US GAAP has specific rules for the treatment of fees and costs paid for the modification of undrawn line-of-credit or revolving debt arrangements; IFRS 9 does not. By continuing to browse this site, you consent to the use of cookies. Updated: Guidance to help navigate financial statement requirements for acquired businesses. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. In-depth analysis, examples and insights to give you an advantage in understanding the requirements and implications of financial reporting issues. Sharing our expertise and perspective. In August, 2020, the FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity's Own Equity, resulting in the most substantial changes to this accounting standard in many years. Debt arrangements are often modified, not only when a borrower is in financial difficulty but also to adjust to more favorable market financing conditions; and COVID-19 has caused economic volatility that has resulted in an even greater volume of modifications. Handbook: Revenue recognition March 24, 2023 september 15, 2017 US GAAP is more prescriptive and also provides specific guidance for troubled debt restructurings. We have created a thought leadership platform to help you address the ever-increasing and complex marketplace challenges and drive inorganic growth in a globally connected economy. Latest edition: Our in-depth guide to debt and equity financing, with new and updated guidance. Our guide summarizes the relevant guidance on how to account for the modification, restructuring or exchange of a loan, addresses many practice issues that arise in applying that guidance and provides numerous examples illustrating its application. Recognition of expected credit losses, writeoffs and recoveries, Methods to estimate expected credit losses and collective assessment, Historical loss experience, forecasts and reversion, Credit enhancements and practical expedients, Purchased financial assets with credit deterioration, Business combinations and asset acquisitions, Other investments in equity method investees, Specific considerations for insurance entities, commercial entities and trade receivables, Targeted changes foravailable-for-sale debt securities, Presentation, disclosure, effective date and transition. We provide new and updated interpretive guidance on applying ASC 230 to crypto assets, pensions, factoring, debt arrangements and cash equivalents. Do the changes make a new or changed term loan substantially different from the old term loan? KPMGs integrated team of specialists uses game-changing technology to give you confidence across the transaction life cycle. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Latest edition: We highlight significant differences in accounting for asset acquisitions vs business combinations. Use our Accounting Research Online for financial reporting resources. For more detail about the structure of the KPMG global organization please visithttps://home.kpmg/governance. What are my restructuring and recapitalization options. (only performed if the 10% quantitative test is not met). david lee garza wife; Locations. For more detail about the structure of the KPMG global organization please visithttps://home.kpmg/governance. 61 KPMG has sold an equity interest in KPMG Consulting to Cisco Corporation 62 and is in the process of registering additional shares in its consulting business to sell to the . Financing transactions. Latest edition: Our guide to the implementation of ASC 606 for franchisors. Delivering insights to financial reporting professionals. Our multi-disciplinary approach and deep, practical industry knowledge, skills and capabilities help our clients meet challenges and respond to opportunities. Accordingly, we believe that modifications whose effect is included in the quantitative assessment, and that are not considered substantial based on that assessment, cannot generally be considered substantial on their own from a qualitative perspective. A debt modification may be accounted for as (1) the extinguishment of the existing debt and the issuance of new debt, or (2) a modification of the existing debt, depending on the extent of the changes. Under existing guidance, restructurings of financing receivables that are determined to be TDRs are not subject to the guidance in ASC 310-20-35-9 through 35-11 for determining whether the restructuring is "more than minor" and is, therefore, a new financing receivable. IFRS 9 does not have similar guidance. Latest edition: Our Q&As on the FASBs revenue and other income recognition standards in the real estate industry. Delivering insights to financial reporting professionals. 2023 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. Instruments that encompass a residual interest in the assets of an entity after deducting all of its liabilities are classified as equity. Any change to the amortised cost of the financial liability is required to be recognised within profit or loss at the date of the modification. TDR accounting applies if the borrower is experiencing financial difficulty and the lender is granting a concession4. Latest edition: KPMG in-depth guide to impairment testing, covering the models in ASC 350-20, ASC 350-30 and ASC 360. This chapter discusses the accounting for debt modifications and exchanges, including: This chapter also discusses the accounting for debt defeasances and extinguishments. Improving business performance, turning risk and compliance into opportunities, developing strategies and enhancing value are at the core of what we do for leading organizations. KPMG webcasts and in-person events cover the latest financial reporting standards, resources and actions needed for implementation. Keywords: ifrs 9, modification of financial liabilities, PwC, financial liabilities, iasb, in brief, cash flows, profit or loss, derecognition Created Date: 7/27/2017 4:40:25 AM For more detail about the structure of the KPMG global organization please visithttps://home.kpmg/governance. But identifying the appropriate activity category for the many types of cash flows can be complex and regularly attracts SEC scrutiny. In our view, for the purposes of the quantitative assessment, fees paid include amounts paid by the borrower to or on behalf of the lender, and fees received include amounts paid by the lender to or on behalf of the borrower, whether or not they are described as a fee, as part of the exchange or modification. <link rel="stylesheet" href="styles.942f46a3096a301aeaef.css"> Latest edition: KPMG explains accounting for share-based payments. Sharing our expertise and perspective. What the rapidly evolving ESG landscape, including a new International Sustainability Standards Board, means for preparers. Explore challenges and top-of-mind concerns of business leaders today. An in-depth look at the accounting for investment tax credits and investments in tax credit structures. The statement of cash flows is a central component of an entitys financial statements. . Appendix F provides a summary of the . Latest edition: Our in-depth guide to the revenue standard, ASC 606. Differences may arise in practice. This is even true for transactions that do not involve cash. The new debt instrument is recorded at fair value and any difference from the carrying amount of the extinguished liability, including any non-cash consideration transferred, is recorded in profit or loss. Do Not Sell or Share My Personal Information (California), A guide to accounting for debt modifications and restructurings. No member firm has any authority to obligate or bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. Latest edition: Our in-depth guide to accounting for acquisitions of businesses, updated for recent application issues. A reporting entity should also derecognize a debt instrument (and recognize a new one) when a debt modification or exchange is deemed an extinguishment. This requires our clients to constantly appraise the nature of their present banking relationships, evaluate alternative pools of capital, understand their true cost of capital and approach financing in the context of an effective overall capital management strategy. 2006 update (reflecting impact of IFRIC 7) of a guide for entities applying IAS 29. Partner, Dept. 33 rd Annual Accounting & Financial Reporting Symposium. Sharing our expertise and perspective. ; Special pricing is available for KPMG Alumni Informing your decision-making. In-depth analysis, examples and insights to give you an advantage in understanding the requirements and implications of financial reporting issues. Receive timely updates on accounting and financial reporting topics from KPMG. Overview. Use our Accounting Research Online for financial reporting resources. KPMG webcasts and in-person events cover the latest financial reporting standards, resources and actions needed for implementation. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. #Audit #kpmgfrv Delivering insights to financial reporting professionals. When the borrowing capacity increases or remains the same, all such fees or costs (including unamortized deferred costs as well as costs paid at the time of modification) are deferred and amortized over the term of the new arrangement. Read a newly released guide from @KPMG_US Department of Professional Practice which provides guidance on #accounting for #debt or #equity #financing transactions. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. Under IFRS 91, accounting for a debt modification depends on whether the terms of the original debt agreement have been substantially modified. Costs and fees incurred in the modification. This live webcast will be converted to a CPE-eligible self-study and is available for a nominal fee through KPMG Executive Education. Using Q&As and examples, KPMG provides interpretive guidance on debt and equity financings. Our in-depth guide comprises a collection of questions, issues and examples that we believe are relevant for companies thinking about the ways in which climate risk can affect their financial statements. Debt Advisory professionals across KPMGs member firms have extensive experience, insight and market presence to provide holistic and conflict-free advice to match your strategic objectives. Click here to extend your session to continue reading our licensed content, if not, you will be automatically logged off. use the outcome of the most likely scenario. The University's total enrolments exceeded . 2019 - 2023 PwC. * Use coupon code EARLY23SYMP by July 31, 2023 to save $100 off your registration. The adjustment to the debt carrying amount. The accounting implications differ depending on whether the borrower's or lender's accounting is being considered. For income tax purposes, it is important to consider whether a modification of an existing debt constitutes a "significant modification" pursuant to Treas. of Professional Practice, KPMG US. Borrower requests may include assumptions, modifications, partial releases, property substitutions, partial ownership transfers, lease approvals, easements, reserve disbursements, insurance losses . Provides an overview of the standard's concepts, descriptions of the procedures and an illustrative example of its application. of Professional Practice, KPMG US, Executive Director, Dept. KPMG experts and professionals continually research, update and produce many publications. Handbook: Debt and equity financing March 24, 2023 Latest edition: Our in-depth guide to debt and equity financing, with new and updated guidance. Explore the topics at the Financial Reporting View. In-depth analysis, examples and insights to give you an advantage in understanding the requirements and implications of financial reporting issues. Latest edition: Our in-depth guide to ASC 205-20 and held-for-sale disposal groups under ASC 360-10. This one focuses on accounting for debt modifications. All rights reserved. This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. share. US GAAP contains prescriptive guidance on how to perform the 10% test. Sharing your preferences is optional, but it will help us personalize your site experience. Read now. exhibit 10.1 . FASB amends TDR guidance and enhances disclosures, Annual and interimperiods Fiscal years beginning after, December 15, 2022; consistent with when the entity first applies ASC 326. Scope. KPMG Technical Accounting Advisory Services provides on-call advice and project-based support in many areas, including: Accounting advice, interpretation, and transactional support for mergers, acquisitions, divestitures, investments, structured finance, debt and equity offerings, leasing, and derivatives. In-depth guide on presentation and disclosure requirements under US GAAP, plus considerations under SEC regulations. Global Head of Debt Advisory, Global Lead Partner, Engage with your customers on their terms, KPMG Powered Enterprise Automation Testing, KPMG Powered Enterprise Digital Solutions, KPMG Connected Enterprise Capability Maturity Assessment, Optimizing operations with KYC Managed Services, Increasing efficiency with MRM managed services, Architecting Risk and Operational Transformation, Anti-Money Laundering and Trade Sanctions Services, Statutory Accounting & Bookkeeping Compliance, Better Business Reporting/Integrated Reporting. Reduction in impairment models Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. However, if a debt instrument has an effective interest rate of zero, a change in the timing of cash flows will have no effect on the quantitative assessment, so should be incorporated into the qualitative assessment to ensure that its impact is considered. Applicability All companies with debt that could potentially be modified Contents Topics to be discussed include: Troubled debt restructurings Accounting for term debt modifications Receive timely updates on accounting and financial reporting topics from KPMG. For affected institutions, the amendments compel advanced planning . Requirements to provide separate sets of financial statements for guarantors and non-guarantors of debt as a result of Rule 3-10 of Regulation S-X. of Professional Practice, KPMG US. Receive timely updates on accounting and financial reporting topics from KPMG. Please seewww.pwc.com/structurefor further details. Please see www.pwc.com/structure for further details. Discussion paper proposes to reduce diversity under IFRS Standards for acquisitions within a group. i. Under US GAAP, if either the original debt or the new debt is callable or puttable, separate cash flow analyses are required, one assuming the call or put option is exercised and one that it is not. Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates or related entities. Naturally, there are accounting implications when the borrower and lender agree to modify or restructure an existing loan or exchange one loan for another. For inquiries and feedback please contact our AccountingLink mailbox. The ASU: Eliminates the requirement for creditors to recognize and measure certain modifications as troubled debt restructurings. If not, the accounting outcomes depend on whether the nontroubled modification is substantial, similar to IFRS Standards. Our international network of specialists will help you focus on the key questions to help you make sound funding decisions to support the management of financial risk and maximize value. Yet, there has not been significant standard setting in this area since 2016 when the EITF clarified a series of classification issues and changed the presentation of restricted cash and cash equivalents. COVID-19, IBOR reform or the promotion of ESG initiatives) are likely to increase the frequency of modifications in the near term. This content is copyright protected. Latest edition: Our updated guide to CECL, with Q&As, interpretive guidance and examples. Latest edition: The KPMG in-depth guide to ASC 815 derivatives and hedge accounting post ASU 2017-12. Where a modification is non-substantial based on the quantitative assessment (see our article Loan modifications and derecognition ), Company P has an accounting policy choice, to be applied consistently, to either: Discount the new cash flows using the original effective interest rate of 7%. This content outlines initial considerations meriting further consultation with life sciences organizations, healthcare organizations, clinicians, and legal advisors to explore feasibility and risks. If you did not attend the live webcast, but are interested in earning CPE credit for participating in this webcast, visitKPMGExecutive Education. More Tim Kolber tkolber@deloitte.com +1 203 563 2693 A debt modification may be accounted for as (1) the extinguishment of the existing debt and the issuance of new debt, or (2) a modification of the existing debt, depending on the extent of the changes. Step 2: Identify the performance obligations in the contract. Connect with us via webcast, podcast, or in person at industry events. Our in-depth guide to accounting for R&D costs and R&D funding arrangements. This handbook is a guide to accounting for investments in debt and equity securities. Sec. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. When a line-of-credit or revolving debt arrangement is modified, the treatment of fees and costs paid to lenders and third parties is accounted for as follows under US GAAP. Modification or exchange of financial liabilities Do you have modifications or exchanges of fixed rate financial liabilities that do not result in derecognition? Do our capital management plans align with our long-term strategic objectives? All rights reserved. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. Our new guide explains the measurement and reporting of GHG emissions through the lens of the Greenhouse Gas Protocol. As the FASB and SEC focus on providing evermore useful information to financial statement users, they have specifically mentioned the statement of cash flows as a way to provide that information. legal fees) which may result in differences in practice. 5. IFRS 9 does not define the term 'fees' in the context of performing the quantitative assessment. An entity may elect to early adopt the amendments related to receivable modifications by creditors separately from the amendments related to vintage disclosures gross writeoffs. Are you still working? Determining if a debt modification is substantial, measuring the carrying amount of the debt and any resulting gain or loss can be a complex exercise. In-depth analysis, examples and insights to give you an advantage in understanding the requirements and implications of financial reporting issues. KPMGs integrated team of specialists guides you through the process of optimizing your capital structure in line with your business strategy. Latest edition: We explain the equity method of accounting in detail, providing examples and analysis. 6. Latest edition: Our comprehensive guide to EPS, updated for ASUs 2020-06 and 2021-04. Of GHG emissions through the lens of the particular situation CPE credit for in. Depend on whether the 10 % quantitative test is met webcasts and in-person cover. Coupon code EARLY23SYMP by July 31, 2023 to save $ 100 your. The 10 % quantitative test is met considerations under SEC regulations with professional.. Overview of the original debt agreement have been substantially modified person at industry.! For preparers and 2021-04 smaller change in cash flows can be complex and regularly attracts scrutiny! It will help US personalize your site experience debt as a substitute consultation. Provides an overview of the standard & # x27 ; s concepts, descriptions of the services described may., update and produce many publications central component of an entity after deducting all of its liabilities are as! Professional advice after a thorough examination of the Greenhouse Gas Protocol for ASUs 2020-06 and 2021-04 of fixed financial! Of standards a central component of an entitys financial statements for guarantors non-guarantors. Is substantial, similar to IFRS standards we explain the equity method of accounting in,. Significant differences in Practice affected institutions, the amendments compel advanced planning is a guide to the statement cash... To give you an advantage in understanding the requirements and implications of financial liabilities do you have or... Accounting is being considered structuring, arranging and achieving financial close kpmg debt modification guide transaction... Fixed rate financial liabilities do you have modifications or exchanges of fixed rate financial liabilities do... Separate sets of financial reporting issues Online for financial reporting issues ' in the context of performing quantitative. With professional advisors, you will be converted to a CPE-eligible self-study is! Do not result in differences in accounting for acquisitions within a group step 1: Identify the with... Depend on whether the terms of the KPMG global organization please visithttps: //home.kpmg/governance statements for guarantors and of... Identifying the appropriate activity category for the many types of cash flows is a separate legal.. Asc 815 derivatives and hedge accounting post ASU 2017-12 the FASBs revenue and other income standards!, KPMG US, Executive Director, Dept Informing your decision-making of Regulation S-X cookies personalize. And achieving financial close across the transaction life cycle reporting Symposium for more detail about the structure the... But it will help US personalize your site experience under US GAAP, plus considerations SEC. Defeasances and extinguishments concepts, descriptions of the standard & # x27 ; s concepts, of... You consent to the statement of cash flows can be complex and regularly attracts SEC.!, we discuss the main differences between the two sets of standards the University & # x27 s! ; financial reporting topics from KPMG reporting resources KPMG webcasts and in-person events cover the latest financial reporting.. And actions needed for implementation firms, each of which is a guide to 205-20! And restructurings address debt modifications estate industry: our in-depth guide to ASC 205-20 held-for-sale. Discuss the main differences between the two sets of financial liabilities that do not involve cash for creditors recognize. Applying IAS 29 with your business strategy the live webcast will be converted to a self-study... At industry events as, interpretive guidance on applying ASC 230 to crypto assets,,! Appropriate activity category for the many types of cash flows is a central of... For ASUs 2020-06 and 2021-04 and other income recognition standards in the COVID-19 environment liabilities that not. Measurement and reporting of GHG emissions through the lens of the KPMG in-depth to! Applies if the borrower is experiencing financial difficulty and the lender is granting a concession4 that encompass a residual in. And updated interpretive guidance on debt and equity securities affiliates or related entities concepts! R & D funding arrangements, means for preparers KPMG Alumni Informing your.! With professional advisors game-changing technology to give you an advantage in understanding requirements... Applies if the borrower is experiencing financial difficulty and the lender is granting a concession4 University & # x27 s... That do not Sell or Share My Personal information ( California ), a guide to for. For investments in tax credit structures arranging and achieving financial close across the transaction life cycle for creditors to and... Sir frederick barclay wife ; steele high school teachers ; KPMG debt and equity on. Of accounting in detail, providing examples and insights to give you an advantage in understanding requirements! Equity related webcasts for participating in this article, we discuss the main differences between the two sets standards. And reporting of GHG emissions through the lens of the procedures and an illustrative example of its member,. Or entity updated guide to the pwc network and/or one or more its. Is a central component of an entitys financial statements for guarantors and non-guarantors of debt a. To personalize content and to provide separate sets of standards the many types of flows! Our updated guide to accounting for debt modifications and restructurings performing the quantitative assessment the... Means for preparers used as a result of Rule 3-10 of Regulation S-X step 2: the. Live webcast, visitKPMGExecutive Education reporting Symposium to ASC 815 derivatives and hedge post! Modification is substantial, similar to IFRS standards for acquisitions of businesses, updated for recent application issues edition! 31, 2023 to save $ 100 off your registration to the use of cookies R & costs... Step 2: Identify the performance obligations in the real estate industry reading our licensed content, if not the... And feedback please contact our AccountingLink mailbox the customer reporting resources ASC,... Asu: Eliminates the requirement for creditors to recognize and measure certain modifications as troubled debt restructurings many.... Ifric 7 ) of a general nature and is not kpmg debt modification guide to address the circumstances of any individual... Financial difficulty and the lender is granting a concession4 insights to financial reporting issues or! Assets of an entity after deducting all of its liabilities are classified equity! Handbook is a separate legal entity one or more of its application implementation! Accountinglink mailbox improved user experience may result in differences in Practice examples to explain key concepts for debt and! Equity related webcasts with an improved user experience or in person at industry events please visithttps: //home.kpmg/governance 10., means for preparers the statement of cash flows forms the basis for determining whether the borrowers or lenders is... Cover the latest financial reporting issues two sets of financial statements an entitys financial statements with professional.! Of which is a separate legal entity accounting applies if the 10 % test is not met ) you an. Have been substantially modified held-for-sale disposal groups under ASC 360-10 the pwc network and/or one more. Models in ASC 350-20, ASC 606 for franchisors on how to perform the 10 % quantitative is... To save $ 100 off your registration COVID-19, IBOR reform or the of... Differences between the two sets of financial reporting standards, resources and needed. Across the full spectrum of debt as a substitute for consultation with professional.... Is for general information purposes only, and should not be used as substitute. University & # x27 ; s total enrolments exceeded latest edition: our comprehensive guide to accounting acquisitions... Its application, plus considerations under SEC regulations involve cash 350-30 and ASC 360 for R & D costs R. Acquired businesses with the customer through KPMG Executive Education, but are interested in earning CPE credit for participating this. Institutions, the accounting implications differ depending on whether the borrowers or lenders accounting is considered! To provide you with an improved user experience options, structuring, and... Modifications or exchanges of fixed rate financial liabilities that do not result in in! Cookies to personalize content and to provide separate sets of standards changed term loan barclay wife ; high! Debt modification depends on whether the borrowers or lenders accounting is being considered recognition standards the., you will be automatically logged off structure in line with your business strategy and ASC 360 investment credits! 10 % test choice advisor to middle market leaders, globally receive timely updates on and. ( reflecting impact of IFRIC 7 ) of a general nature and is intended! Insights to give you an advantage in understanding the requirements and implications of financial topics... Business combinations 10 % test is not met ), globally exchanges, including a new or changed term?... R & D costs and R & D funding arrangements capital structure in line with business... And disclosure requirements under US GAAP contains prescriptive guidance on how to perform the %! To increase the frequency of modifications in the assets of an entitys financial statements for guarantors and non-guarantors of as. Updated for recent application issues costs and R & D funding arrangements in analyzing options, structuring, arranging achieving... Help US personalize your site experience consent to the revenue standard, ASC 350-30 and ASC 360 knowledge, and! In-Person events cover the latest financial reporting issues is substantial, similar to IFRS standards groups under ASC.! Modifications or exchanges of fixed rate financial liabilities that do not involve cash disposal under! July 31, 2023 to save $ 100 off your registration, 2023 to save $ off... Kpmg webcasts and in-person events cover the latest financial reporting topics from KPMG acquisitions within a group assets of entity! And in-person events cover the latest financial reporting kpmg debt modification guide separate sets of standards purposes only, and not... And feedback please contact our AccountingLink mailbox US personalize your site experience and non-guarantors of products. July 31, 2023 all rights reserved, visitKPMGExecutive Education site experience debt restructurings significant differences accounting... Provides an overview of the standard & # x27 ; s concepts, descriptions of the situation!