Updated guide to accounting for debt modifications

May 13, 2024
Audit Debt & equity Financial reporting

An updated edition of RSM’s Guide to accounting for debt modifications and restructurings is now available. The guide primarily focuses on subtopics 470-50 and 470-60 of the Financial Accounting Standards Board’s (FASB) Accounting Standards Codification (ASC) Topic 470, Debt.

This edition reflects recent FASB amendments to the relevant accounting standards and enhancements to RSM’s interpretive guidance and illustrative examples. The following list highlights some of the more significant topics added, expanded upon, or otherwise updated in the guide:

  • Post-adoption guidance of Accounting Standards Update (ASU) 2020-06 and ASC Topic 326, Financial Instruments – Credit Losses
  • Passing of the sunset date for the London Interbank Offered Rate (LIBOR)
  • Unused commitments related to letter of credit arrangements added to the list of the Security and Exchange Commission’s required disclosures for public companies

A summary of all significant changes can be found in Appendix D of the guide.

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