# ASC 852-10-25: Reorganizations — Overall — 25 Recognition

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/852/10/#25-recognition)

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## ASC 852-10-25: 25 Recognition

[Read section](https://asc.understandingaccounting.org/asc/852/10/#25-recognition)

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##### [852-10-25-1](https://asc.understandingaccounting.org/asc/852/10/#852-10-25-1)

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As explained in paragraph [852-10-45-1](https://asc.understandingaccounting.org/asc/852/10/#852-10-45-1), entering a [reorganization proceeding](https://asc.understandingaccounting.org/glossary/r/#reorganization-proceeding "A Chapter 11 case from the time at which the petition is filed until the plan is confirmed."), although a significant event, does not ordinarily affect or change the application of generally accepted accounting principles (GAAP) followed by the entity in the preparation of its financial statements. However, the needs of financial statement users change, and thus changes in the reporting practices previously followed by the entity are necessary.

##### [852-10-25-2](https://asc.understandingaccounting.org/asc/852/10/#852-10-25-2)

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See Section 852-10-45 for financial statement presentation guidance applicable to entities during and after reorganization proceedings.