United States

Debt modifications: Updated guidance and new loan syndication example

FINANCIAL REPORTING INSIGHTS  | 

We have updated our white paper, Fundamentals of accounting for debt modifications and restructurings, which summarizes the relevant guidance on how a borrower accounts for the modification, restructuring or exchange of a loan and provides numerous examples of how to apply this guidance. The updates reflect:

  • Recently issued Accounting Standards Updates on the presentation of debt issuance costs related to both term debt and lines of credit
  • Additional discussion about the accounting for a debt modification or restructuring in which the lender is a related party
  • A new example illustrating how to account for changes to prepayable loans in a syndication