{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/470/60/#10-objectives","source":"FASB Accounting Standards Codification, Basic View","usage":"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.","topic":"470","topic_title":"Debt","subtopic":"470-60","subtopic_title":"Troubled Debt Restructurings by Debtors","section":{"number":"10","label":"10 Objectives","anchor":"10-objectives","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"470-60-10-1","para":"10-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_63F78DBB-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The accounting for restructured debt is based on the substance of the modifications—the effect on cash flows—not on the labels chosen to describe those cash flows. </span></span><span class=\"sfragment\" id=\"sfr_63F78F53-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The substance of all modifications of a debt in a <a href=\"/glossary/t/#troubled-debt-restructuring\" class=\"term\" title=\"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.\"><span>troubled debt restructuring</span></a> is essentially the same whether they involve modifications of any of the following: </span></span><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_63F790C0-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Timing </span></span></div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_63F7922A-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Amounts designated as interest </span></span></div></li><li class=\"li-norm\"><span class=\"linum\">c</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_63F7936B-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Amounts designated as face amounts. </span></span></div></li></ol></div></div>","snippet":"The accounting for restructured debt is based on the substance of the modifications—the effect on cash flows—not on the labels chosen to describe those cash flows. The substance of all modifications of a debt in a troubl…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:60f9297431d3b9194937ff7aaa5f87dd4641b413ca87dbfcaea1a22321167046","downloaded_from":"2026-09-10T00:33:17.391Z","last_downloaded_at":"2026-09-10T00:33:17.391Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481555","source_sha256":"f6e47986924ba837a995b540bc2cb8b0cb38859c7cee0181e825e9fc08d62a3c"}},{"citation":"470-60-10-2","para":"10-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_63F794B2-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">All of those kinds of modifications affect future cash receipts or payments and therefore affect both of the following: </span></span><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_63F795E9-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The creditor's total return on the receivable, its effective interest rate, or both </span></span></div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_63F7971E-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The debtor's total cost on the payable, its effective interest rate, or both. </span></span></div></li></ol></div></div>","snippet":"All of those kinds of modifications affect future cash receipts or payments and therefore affect both of the following:\n(a) The creditor's total return on the receivable, its effective interest rate, or both\n(b) The debt…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:faf8626e0aaf09562a72e2aadbf7c270e1dbc384d991015184c36baf97dd4521","downloaded_from":"2026-09-10T00:33:17.391Z","last_downloaded_at":"2026-09-10T00:33:17.391Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481555","source_sha256":"f6e47986924ba837a995b540bc2cb8b0cb38859c7cee0181e825e9fc08d62a3c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a249a58fe0f3ae45624bfb1e85a95ffe8420912bdf98223c2e4fd2d2afc708d9","downloaded_from":"2026-09-10T00:33:17.391Z","last_downloaded_at":"2026-09-10T00:33:17.391Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481555","source_sha256":"f6e47986924ba837a995b540bc2cb8b0cb38859c7cee0181e825e9fc08d62a3c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4559be879a2e102cc502c00c5150547c425e0a0bc88f6bc73b653b6446db8880","downloaded_from":"2026-09-10T00:33:17.391Z","last_downloaded_at":"2026-09-10T00:33:17.391Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481555","source_sha256":"f6e47986924ba837a995b540bc2cb8b0cb38859c7cee0181e825e9fc08d62a3c"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4559be879a2e102cc502c00c5150547c425e0a0bc88f6bc73b653b6446db8880","downloaded_from":"2026-09-10T00:33:17.391Z","last_downloaded_at":"2026-09-10T00:33:17.391Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481555","source_sha256":"f6e47986924ba837a995b540bc2cb8b0cb38859c7cee0181e825e9fc08d62a3c"}}