# ASC 470-50-15: Debt — Modifications and Extinguishments — 15 Scope and Scope Exceptions Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/470/50/#15-scope-and-scope-exceptions) Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-10T00:32:50.760Z to 2026-09-10T00:32:50.760Z Record version: sha256:9871c9cccc2322e0732002b01f94601921a207df44e9c2e1fd5ce6b4efe963dc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 470-50-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/470/50/#15-scope-and-scope-exceptions) SEC content: no #### Entities ##### [470-50-15-1](https://asc.understandingaccounting.org/asc/470/50/#470-50-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:32:50.760Z to 2026-09-10T00:32:50.760Z Record version: sha256:5e777cd5732e498bd499fcffd987e5e1fb3b21b93117667e2a78c203255e8372 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to all entities. #### Transactions ##### [470-50-15-2](https://asc.understandingaccounting.org/asc/470/50/#470-50-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:32:50.760Z to 2026-09-10T00:32:50.760Z Record version: sha256:6fbc441d3db3a4391129a3ce50cfc94384bdf3f0b339bdbebb1c32697247df40 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies, in part, to the following transactions and activities: 1. a Extinguishments of debt effected by issuance of common or preferred stock, including redeemable and fixed-maturity preferred stock, that do not represent the exercise of a conversion right contained in the terms of the debt at issuance. ##### [470-50-15-3](https://asc.understandingaccounting.org/asc/470/50/#470-50-15-3) Pending content: yes Source downloaded (UTC): 2026-09-10T00:32:50.760Z to 2026-09-10T00:32:50.760Z Record version: sha256:b224da0e2cc052c1124b7bbf0f2a6aec0ac986c08b8e5f9306b7e6ef746dc55a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic does not apply to the following transactions and activities: 1. a Conversions of debt into equity securities of the debtor pursuant to conversion privileges provided in the terms of the debt at issuance. Additionally, the guidance in this Subtopic does not apply to conversions of convertible debt instruments pursuant to terms that reflect changes made by the debtor to the conversion privileges provided in the debt at issuance (including changes that involve the payment of consideration) for the purpose of inducing conversion. Guidance on conversions of debt instruments (including induced conversions) is contained in paragraphs [470-20-40-13](https://asc.understandingaccounting.org/asc/470/20/#470-20-40-13) and [470-20-40-15](https://asc.understandingaccounting.org/asc/470/20/#470-20-40-15). 2. b Extinguishments of debt through a [troubled debt restructuring](https://asc.understandingaccounting.org/glossary/t/#troubled-debt-restructuring "A restructuring of a debt constitutes a troubled debt restructuring if the creditor for economic or legal reasons related to the debtor's financial difficulties grants a concession to the debtor that it would not otherwise consider."). (See Section 470-60-15 for guidance on determining whether a modification or exchange of debt instruments is a troubled debt restructuring. If it is determined that the modification or exchange does not result in a troubled debt restructuring, the guidance in this Subtopic shall be applied.) 3. c Transactions entered into between a debtor or a debtor's agent and a third party that is not the creditor. Transition date:(P) December 16, 2025; (N) December 16, 2025Transition guidance: [470-20-65-4](https://asc.understandingaccounting.org/asc/470/20/#470-20-65-4)The guidance in this Subtopic does not apply to the following transactions and activities: 1. a Conversions of debt instruments pursuant to conversion privileges provided in the terms of those instruments. Additionally, the guidance in this Subtopic does not apply to conversions of convertible debt instruments pursuant to terms that reflect changes made by the debtor to the conversion privileges provided in the existing terms of those debt instruments (including changes that involve the payment of consideration) for the purpose of inducing conversion. Guidance on conversions of debt instruments (including induced conversions) is contained in paragraphs [470-20-40-4](https://asc.understandingaccounting.org/asc/470/20/#470-20-40-4), [470-20-40-13](https://asc.understandingaccounting.org/asc/470/20/#470-20-40-13), and [470-20-40-15](https://asc.understandingaccounting.org/asc/470/20/#470-20-40-15). 2. b Extinguishments of debt through a [troubled debt restructuring](https://asc.understandingaccounting.org/glossary/t/#troubled-debt-restructuring "A restructuring of a debt constitutes a troubled debt restructuring if the creditor for economic or legal reasons related to the debtor's financial difficulties grants a concession to the debtor that it would not otherwise consider."). (See Section 470-60-15 for guidance on determining whether a modification or exchange of debt instruments is a troubled debt restructuring. If it is determined that the modification or exchange does not result in a troubled debt restructuring, the guidance in this Subtopic shall be applied.) 3. c Transactions entered into between a debtor or a debtor's agent and a third party that is not the creditor. #### Other Considerations ##### [470-50-15-4](https://asc.understandingaccounting.org/asc/470/50/#470-50-15-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:32:50.760Z to 2026-09-10T00:32:50.760Z Record version: sha256:0d4cd610309842c32175b017378c40395ff450275d224b31139d7a6a5c3f2665 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The general guidance for the extinguishment of liabilities is contained in Subtopic 405-20and defines transactions that the debtor shall recognize as an extinguishment of a liability.