This course provides an overview of the accounting guidance for debt modifications and exchanges under ASC 470-50. It begins with the framework for determining whether a change in debt terms results in an extinguishment and covers key concepts such as debtor and creditor identification, transactions involving third party intermediaries, and the 10% cash flow test. The course also discusses how to evaluate fees and costs related to debt modifications, including fees between debtors and creditors, third party costs, and modifications to revolving debt arrangements. Throughout, you'll gain practical insight into how to assess whether a debt modification results in extinguishment accounting or continued accounting for the existing debt arrangement.
Course Publication Date:
August 22, 2026
This course is available with
NO ADDITIONAL FEE if you have an active
self study membership or
all access membership or can be purchased for
$20.00!
| Author: | Kelen Camehl |
| Course No: | ACT-NAVDEBTCHN-87006 |
| Recommended CPE: | 2.00 |
| Delivery Method: | QAS Self Study |
| Level of Knowledge: | Basic |
| Prerequisites: | None |
| Advanced Preparation: | None |
| Recommended Field of Study: | Accounting
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Learning Objectives
- Identify the scope and application of ASC 470 50 for debt modifications and exchanges.
- Determine whether a debt modification or exchange results in an extinguishment.
- Recognize the factors used to evaluate debtor, creditor, and third party intermediary relationships.
- Determine how to apply the 10% cash flow test for debt modifications and exchanges.
- Identify the accounting treatment for fees, costs, and revolving debt arrangements.