# ASC 852-10-45: Reorganizations — Overall — 45 Other Presentation Matters Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/852/10/#45-other-presentation-matters) 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): 2026-09-10T02:03:11.975Z to 2026-09-10T02:03:11.975Z Record version: sha256:3667eaf103b768134c2fbf1017a743397252e1f4a0c2f1258fc77202d4cd3d80 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 852-10-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/852/10/#45-other-presentation-matters) SEC content: no #### Financial Reporting during Reorganization Proceedings ##### [852-10-45-1](https://asc.understandingaccounting.org/asc/852/10/#852-10-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:03:11.975Z to 2026-09-10T02:03:11.975Z Record version: sha256:5b29b0c7905113ee4033309e04a3e01b729e51dafd993c46a60306846362ed59 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [852-10-45-2](https://asc.understandingaccounting.org/asc/852/10/#852-10-45-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:03:11.975Z to 2026-09-10T02:03:11.975Z Record version: sha256:65d38b52f2b2dd889d290bca6d46b3d8957842aba24511f39939df6170a5a1f9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For the purpose of presenting an entity's financial evolution during a [Chapter 11](https://asc.understandingaccounting.org/glossary/c/#chapter-11 "A reorganization action, either voluntarily or involuntarily initiated under the provisions of the Bankruptcy Code, that provides for a reorganization of the debt and equity structure of the business and allows the business to continue operations. A debtor may also file a plan of liquidation under Chapter 11.") reorganization (see paragraph [852-10-10-1](https://asc.understandingaccounting.org/asc/852/10/#852-10-10-1)), the financial statements for periods including and after filing the Chapter 11 [petition](https://asc.understandingaccounting.org/glossary/p/#petition "A document filed in a court of bankruptcy, initiating proceedings under the Bankruptcy Code.") shall distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the business. ##### [852-10-45-3](https://asc.understandingaccounting.org/asc/852/10/#852-10-45-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:03:11.975Z to 2026-09-10T02:03:11.975Z Record version: sha256:d8f9fbed75e5108df5c7423541662c2f52cecb2733ab5a9e700d16c2369c621f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Example 1 (see paragraph [852-10-55-2](https://asc.understandingaccounting.org/asc/852/10/#852-10-55-2)) provides an illustration of financial statements and notes thereto for an entity operating under Chapter 11. ##### [852-10-45-4](https://asc.understandingaccounting.org/asc/852/10/#852-10-45-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:03:11.975Z to 2026-09-10T02:03:11.975Z Record version: sha256:7bb6e56b1e4a64632c45b2581030ed699a4e2d743d8bb3005fb3a40b716ec0c5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The balance sheet of an entity in Chapter 11 shall distinguish [prepetition liabilities](https://asc.understandingaccounting.org/glossary/p/#prepetition-liabilities "Liabilities that were incurred by an entity before its filing of a petition for protection under the Bankruptcy Code including those considered by the Bankruptcy Court to be prepetition claims, such as a rejection of a lease for real property.") subject to compromise from those that are not (such as fully secured liabilities that are expected not to be compromised) and [postpetition liabilities](https://asc.understandingaccounting.org/glossary/p/#postpetition-liabilities "Liabilities incurred after the filing of a petition that are not associated with prebankruptcy events. Thus, these liabilities are not considered prepetition liabilities."). Liabilities that may be affected by the plan shall be reported at the amounts expected to be allowed, even if they may be settled for lesser amounts. If there is uncertainty about whether a [secured claim](https://asc.understandingaccounting.org/glossary/s/#secured-claim "A liability that is secured by collateral. A fully secured claim is one in which the value of the collateral is greater than the amount of the claim.") is undersecured, or will be impaired under the [plan of reorganization](https://asc.understandingaccounting.org/glossary/p/#plan-of-reorganization "An agreement formulated in Chapter 11 proceedings under the supervision of the Bankruptcy Court that enables the debtor to continue in business. The plan, once confirmed, may affect the rights of undersecured creditors, secured creditors, and stockholders as well as those of unsecured creditors. Before a plan is confirmed by the Bankruptcy Court, it must comply with general provisions of the Bankruptcy Code. Those provisions mandate, for example, that the plan is feasible, the plan is in the best interest of the creditors, and, if an impaired class does not accept the plan, the plan must be determined to be fair and equitable before it can be confirmed."), the entire amount of the [claim](https://asc.understandingaccounting.org/glossary/c/#claim "As defined by Section 101(4) of the Bankruptcy Code, a right to payment, regardless of whether the right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, secured, or unsecured, or a right to an equitable remedy for breach of performance if such breach results in a right to payment, regardless of whether the right is reduced to a fixed, contingent, matured, unmatured, disputed, undisputed, secured, or unsecured right.") shall be included with prepetition claims subject to compromise; such a claim shall not be reclassified unless it is subsequently determined that the claim is not subject to compromise. ##### [852-10-45-5](https://asc.understandingaccounting.org/asc/852/10/#852-10-45-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:03:11.975Z to 2026-09-10T02:03:11.975Z Record version: sha256:6e6fdadde1b0c824ff7c5efcd49b288285ee49f921f9e556a4181d6c3a2e580d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Prepetition liabilities, including claims that become known after a petition is filed, shall be reported on the basis of the expected amount of the [allowed claims](https://asc.understandingaccounting.org/glossary/a/#allowed-claim "The amount allowed by the Bankruptcy Court as a claim against the estate. This amount may differ from the actual settlement amount.") in accordance with Subtopic 450-20, as opposed to the amounts for which those allowed claims may be settled. Once these claims satisfy the accrual provisions of that Subtopic, they shall be recorded in the accounts in accordance with this paragraph. Paragraph [852-10-50-2](https://asc.understandingaccounting.org/asc/852/10/#852-10-50-2) notes that claims not subject to reasonable estimation are required to be disclosed in the notes to financial statements. ##### [852-10-45-6](https://asc.understandingaccounting.org/asc/852/10/#852-10-45-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:03:11.975Z to 2026-09-10T02:03:11.975Z Record version: sha256:400a863bbcb73116b2cb47a3d0fd47b418882e1bdcc5983808f87d914929187e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Debt discounts or premiums as well as debt issue costs shall be viewed as valuations of the related debt. When the debt has become an allowed claim and the allowed claim differs from the net carrying amount of the debt, the recorded amount shall be adjusted to the amount of the allowed claim (thereby adjusting existing discounts or premiums, and deferred issue costs to the extent necessary to report the debt at this allowed amount). The gain or loss resulting from the entries to record the adjustment shall be classified as reorganization items, as discussed in paragraph [852-10-45-9](https://asc.understandingaccounting.org/asc/852/10/#852-10-45-9). Premiums and discounts as well as debt issuance cost on debts that are not subject to compromise, such as fully secured claims, shall not be adjusted. ##### [852-10-45-7](https://asc.understandingaccounting.org/asc/852/10/#852-10-45-7) Pending content: no Source downloaded (UTC): 2026-09-10T02:03:11.975Z to 2026-09-10T02:03:11.975Z Record version: sha256:51b2739b313a4c7800334bca4b6e03ef05f8b76258680139217f2c40b29b380e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [852-10-45-4](https://asc.understandingaccounting.org/asc/852/10/#852-10-45-4) addresses the separation of liabilities subject to compromise from those that are not. Circumstances arising during reorganization proceedings may require a change in the classification of liabilities between those subject to compromise and those not subject to compromise. Liabilities not subject to compromise shall be further segregated into current and noncurrent classifications if the entity presents a classified balance sheet. ##### [852-10-45-8](https://asc.understandingaccounting.org/asc/852/10/#852-10-45-8) Pending content: no Source downloaded (UTC): 2026-09-10T02:03:11.975Z to 2026-09-10T02:03:11.975Z Record version: sha256:5e46d89ca98ece0c4aef80ff24df64bb96b613624ed3a011839fa5304ab5a5a6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Section 470-10-45 requires current liabilities classification in a classified balance sheet for long-term liabilities that, by their terms, are due on demand or will be due on demand within one year, or the operating cycle, if longer. This classification requirement also applies to long-term liabilities that are or will be callable by the creditor because of a violation of a provision of the debt agreement. The [automatic stay provisions](https://asc.understandingaccounting.org/glossary/a/#automatic-stay-provisions "Provisions causing the filing of a petition under the Bankruptcy Code to automatically stay virtually all actions of creditors to collect prepetition debts. As a result of the stay, no party, with minor exceptions, having a security or adverse interest in the debtor's property can take any action that will interfere with the debtor or the debtor's property, regardless of where the property is located or who has possession, until the stay is modified or removed.") of Chapter 11 make it unnecessary to reclassify prepetition long-term liabilities even though prepetition creditors might demand payment or there is a violation of a covenant in the debt agreement. ##### [852-10-45-9](https://asc.understandingaccounting.org/asc/852/10/#852-10-45-9) Pending content: no Source downloaded (UTC): 2026-09-10T02:03:11.975Z to 2026-09-10T02:03:11.975Z Record version: sha256:b014dea8afff88d9e463beba391cdcea651208546db6bf5446a9d3d0cb37dd0e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The statement of operations shall portray the results of operations of the reporting entity while it is in Chapter 11. Revenues, expenses (including professional fees), realized gains and losses, and provisions for losses resulting from the reorganization and restructuring of the business shall be reported separately as [reorganization items](https://asc.understandingaccounting.org/glossary/r/#reorganization-items "Items of income, expense, gain, or loss that are realized or incurred by an entity because it is in reorganization."), except for those required to be reported as discontinued operations in conformity with Subtopic 205-20. ##### [852-10-45-10](https://asc.understandingaccounting.org/asc/852/10/#852-10-45-10) Pending content: no Source downloaded (UTC): 2026-09-10T02:03:11.975Z to 2026-09-10T02:03:11.975Z Record version: sha256:2e47ace6cb8fc3a2585e4437c6e8cdff66c73cd62b0741e2f34d697bfcc9bdac Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. It is not appropriate to defer professional fees and similar types of expenditures until the plan is confirmed and then reduce gain from debt discharge to the extent of the previously deferred expenses. It is also not appropriate to accrue professional fees and similar types of expenditures upon the filing of the Chapter 11 petition. Rather, because professional fees and similar types of expenditures directly relating to the Chapter 11 proceeding do not result in assets or liabilities, they shall be expensed as incurred and reported as reorganization items. ##### [852-10-45-11](https://asc.understandingaccounting.org/asc/852/10/#852-10-45-11) Pending content: no Source downloaded (UTC): 2026-09-10T02:03:11.975Z to 2026-09-10T02:03:11.975Z Record version: sha256:4b76420e4a51c473b5cf06bf86b1d2b64bfbb786e38ead6027cb62ea07318e6d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Interest expense shall be reported only to the extent that it will be paid during the proceeding or that it is probable that it will be an allowed priority, secured, or unsecured claim. Interest expense is not a reorganization item. ##### [852-10-45-12](https://asc.understandingaccounting.org/asc/852/10/#852-10-45-12) Pending content: no Source downloaded (UTC): 2026-09-10T02:03:11.975Z to 2026-09-10T02:03:11.975Z Record version: sha256:fcde884d1d03931fbeaffbc101972a88467ac62c85ce02b7505bd3d3e13b012b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Interest income earned by an entity in Chapter 11 that it would not have earned but for the proceeding, normally all interest income, shall be reported as a reorganization item. ##### [852-10-45-13](https://asc.understandingaccounting.org/asc/852/10/#852-10-45-13) Pending content: no Source downloaded (UTC): 2026-09-10T02:03:11.975Z to 2026-09-10T02:03:11.975Z Record version: sha256:e268563cd9dccd13c3e770d6d5481aeef5659af66922ff696756dd7bb15bfb28 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Reorganization items shall be presented separately within the operating, investing, and financing categories of the statement of cash flows. This presentation can be better accomplished by the use of the direct method of presenting the statement. Paragraph [230-10-45-25](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-25) lists the operating items that shall be reported separately when the direct method is used. That paragraph encourages further breakdown of those operating items if the entity considers such a breakdown meaningful and feasible. Further identification of cash flows from reorganization items should be provided to the extent feasible. For example, interest received might be segregated between estimated normal recurring interest received and interest received on cash accumulated because of the reorganization. If the indirect method is used, details of operating cash receipts and payments resulting from the reorganization shall be disclosed in a supplementary schedule or in the notes to financial statements. (See paragraph [852-10-50-6A](https://asc.understandingaccounting.org/asc/852/10/#852-10-50-6A).) ##### [852-10-45-14](https://asc.understandingaccounting.org/asc/852/10/#852-10-45-14) Pending content: no Source downloaded (UTC): 2026-09-10T02:03:11.975Z to 2026-09-10T02:03:11.975Z Record version: sha256:c8a358365e6debb9ece089ae129ae7c5a7976e9365b17898c094c1511f9c4c71 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Consolidated financial statements that include one or more entities in reorganization proceedings and one or more entities not in reorganization proceedings shall include condensed combined financial statements of the entities in reorganization proceedings. The combined financial statements shall be prepared on the same basis as the consolidated financial statements. ##### [852-10-45-15](https://asc.understandingaccounting.org/asc/852/10/#852-10-45-15) Pending content: no Source downloaded (UTC): 2026-09-10T02:03:11.975Z to 2026-09-10T02:03:11.975Z Record version: sha256:ff5cd6b84d4dc465208049b1a616a7db1cdb328bc7d3c6c63a002525b8d38538 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In addition to making the required paragraph [852-10-50-4](https://asc.understandingaccounting.org/asc/852/10/#852-10-50-4) disclosures, the propriety of the carrying amounts of intra-entity receivables from entities in Chapter 11 shall be evaluated. ##### [852-10-45-16](https://asc.understandingaccounting.org/asc/852/10/#852-10-45-16) Pending content: no Source downloaded (UTC): 2026-09-10T02:03:11.975Z to 2026-09-10T02:03:11.975Z Record version: sha256:ab4bbada48d79d82a9dff09e1734944270d8254513f355c4c2a3b2ca4e4dc156 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Earnings per share (EPS) shall be reported, if required, in conformity with Topic 260. If it is probable that the plan will require the issuance of common stock or common stock equivalents, thereby diluting current equity interests, that fact shall be disclosed. #### Financial Reporting When Entities Emerge from Chapter 11 Reorganization ##### [852-10-45-17](https://asc.understandingaccounting.org/asc/852/10/#852-10-45-17) Pending content: no Source downloaded (UTC): 2026-09-10T02:03:11.975Z to 2026-09-10T02:03:11.975Z Record version: sha256:cdfe596a58851f4e7c802cd98bf4bbabc22a20237d15e5d5d4f5a3b586fc3ec8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entities whose plans have been confirmed by the court and have thereby emerged from Chapter 11 shall apply the reporting principles in paragraphs [852-10-45-19 through 45-29](https://asc.understandingaccounting.org/asc/852/10/#852-10-45-19) as of the confirmation date or as of a later date, as discussed in the following paragraph, when all material conditions precedent to the plan's becoming binding are resolved. ##### [852-10-45-18](https://asc.understandingaccounting.org/asc/852/10/#852-10-45-18) Pending content: no Source downloaded (UTC): 2026-09-10T02:03:11.975Z to 2026-09-10T02:03:11.975Z Record version: sha256:477381f6160a046c234973e90c210ec1b38887c612cf0c92e31f833479c79a75 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The effects of a plan should be included in the entity's financial statements as of the date the plan is confirmed. However, inclusion shall be delayed to a date not later than the effective date if there is a material unsatisfied condition precedent to the plan's becoming binding on all the parties in interest or if there is a stay pending appeal. That might occur, for example, if obtaining financing for the plan or for the transfer of material assets to the debtor by a third party is a condition to the plan's becoming effective. Financial statements prepared as of the date after the parties in interest have approved a plan through the voting process, and issued after the plan has been confirmed by the court, shall report the effects of the plan if there are no material unsatisfied conditions. ##### [852-10-45-19](https://asc.understandingaccounting.org/asc/852/10/#852-10-45-19) Pending content: no Source downloaded (UTC): 2026-09-10T02:03:11.975Z to 2026-09-10T02:03:11.975Z Record version: sha256:6982876c52515f62103111960df9c53f43f4b7c8280b515d8c608a52ae0a1f71 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the reorganization value of the assets of the emerging entity immediately before the date of confirmation is less than the total of all postpetition liabilities and allowed claims, and if holders of existing voting shares immediately before confirmation receive less than 50 percent of the voting shares of the emerging entity, the entity shall adopt fresh-start reporting upon its emergence from Chapter 11. The loss of control contemplated by the plan must be substantive and not temporary. That is, the new controlling interest must not revert to the shareholders existing immediately before the plan was filed or confirmed. ##### [852-10-45-20](https://asc.understandingaccounting.org/asc/852/10/#852-10-45-20) Pending content: no Source downloaded (UTC): 2026-09-10T02:03:11.975Z to 2026-09-10T02:03:11.975Z Record version: sha256:75cf663ccc6e4ef487214c7b672016625248ed0713cfdf772f95082539363cd0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entities that adopt fresh-start reporting in conformity with the preceding paragraph shall apply the following principles: 1. a The reorganization value of the entity shall be assigned to the entity's assets and liabilities in conformity with the procedures specified by Subtopic 805-20. If any portion of the reorganization value cannot be attributed to specific tangible or identified intangible assets of the emerging entity, such amounts shall be reported as goodwill in accordance with paragraph [350-20-25-2](https://asc.understandingaccounting.org/asc/350/20/#350-20-25-2). 2. b [Subparagraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). 3. c Deferred taxes shall be determined under the requirements of paragraph [852-740-45-1](https://asc.understandingaccounting.org/asc/740/852/#740-852-45-1). 4. d [Subparagraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [852-10-45-21](https://asc.understandingaccounting.org/asc/852/10/#852-10-45-21) Pending content: no Source downloaded (UTC): 2026-09-10T02:03:11.975Z to 2026-09-10T02:03:11.975Z Record version: sha256:beeea83f1fd56389a099a3a43c9e5c9a43f46906682b060353067d3d07f7c32a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The financial statements of the entity as of and for the period immediately preceding the date determined in conformity with the guidance in paragraph [852-10-45-17](https://asc.understandingaccounting.org/asc/852/10/#852-10-45-17) shall reflect all activity through that date in conformity with the guidance in paragraphs [852-10-45-1 through 45-16](https://asc.understandingaccounting.org/asc/852/10/#852-10-45-1) . Additionally, the effects of the adjustments on the reported amounts of individual assets and liabilities resulting from the adoption of fresh-start reporting and the effects of the forgiveness of debt shall be reflected in the predecessor entity's final statement of operations. Forgiveness of debt, if any, shall be reported as an extinguishment of debt and classified in accordance with Subtopic 220-20. Adopting fresh-start reporting results in a new reporting entity with no beginning retained earnings or deficit. When fresh-start reporting is adopted, the notes to the initial fresh-start financial statements shall disclose the additional information identified in paragraph [852-10-50-7](https://asc.understandingaccounting.org/asc/852/10/#852-10-50-7). ##### [852-10-45-22](https://asc.understandingaccounting.org/asc/852/10/#852-10-45-22) Pending content: no Source downloaded (UTC): 2026-09-10T02:03:11.975Z to 2026-09-10T02:03:11.975Z Record version: sha256:de8915571bf7964a3a8edae550347f6e7faa0e691af397becfd4b1b37c1ece8a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [852-10-45-23](https://asc.understandingaccounting.org/asc/852/10/#852-10-45-23) Pending content: no Source downloaded (UTC): 2026-09-10T02:03:11.975Z to 2026-09-10T02:03:11.975Z Record version: sha256:f7439185b0417227285c2f1835c3b55728322e2dca8b9189f7294c1b95099b7b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [852-10-45-24](https://asc.understandingaccounting.org/asc/852/10/#852-10-45-24) Pending content: no Source downloaded (UTC): 2026-09-10T02:03:11.975Z to 2026-09-10T02:03:11.975Z Record version: sha256:a31e408e57a97d8f2b241a529e087f405cb3a5955222de3003ba93c03d619130 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [852-10-45-25](https://asc.understandingaccounting.org/asc/852/10/#852-10-45-25) Pending content: no Source downloaded (UTC): 2026-09-10T02:03:11.975Z to 2026-09-10T02:03:11.975Z Record version: sha256:96915be86478abc9aac5248c9cab720e01240abf686517342c10dfe026f75c82 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [852-10-45-26](https://asc.understandingaccounting.org/asc/852/10/#852-10-45-26) Pending content: no Source downloaded (UTC): 2026-09-10T02:03:11.975Z to 2026-09-10T02:03:11.975Z Record version: sha256:d503d9f4c620c9c1df66d6a45db8e3214c071a7885e6dfaca28eca89c5d24d19 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Fresh-start financial statements prepared by entities emerging from Chapter 11 will not be comparable with those prepared before their plans were confirmed because they are, in effect, those of a new entity. Thus, comparative financial statements that straddle a confirmation date shall not be presented. ##### [852-10-45-27](https://asc.understandingaccounting.org/asc/852/10/#852-10-45-27) Pending content: no Source downloaded (UTC): 2026-09-10T02:03:11.975Z to 2026-09-10T02:03:11.975Z Record version: sha256:e79915791d32e791afe8ee0c39fe1b08d51787c07cbcfb288aeac7e8c08cdb18 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Regulatory agencies may require the presentation of predecessor financial statements. However, such presentations shall not be viewed as a continuum because the financial statements are those of a different reporting entity and are prepared using a different basis of accounting, and, therefore, are not comparable. Attempts to disclose and explain exceptions that affect comparability would likely result in reporting that is so unwieldy it would not be useful. ##### [852-10-45-28](https://asc.understandingaccounting.org/asc/852/10/#852-10-45-28) Pending content: no Source downloaded (UTC): 2026-09-10T02:03:11.975Z to 2026-09-10T02:03:11.975Z Record version: sha256:291e510f79f24472480ae95a45af691d76ccad804900916e8d9cac6dd3ecff9d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Example 2 (see paragraph [852-10-55-4](https://asc.understandingaccounting.org/asc/852/10/#852-10-55-4)) provides an illustration of fresh-start reporting and the related illustrative notes to financial statements. ##### [852-10-45-29](https://asc.understandingaccounting.org/asc/852/10/#852-10-45-29) Pending content: no Source downloaded (UTC): 2026-09-10T02:03:11.975Z to 2026-09-10T02:03:11.975Z Record version: sha256:ecde9fbcc516c1ae1f7c8d00a42021a968c4f76834a5ed273a3fa95759d86f44 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entities emerging from Chapter 11 that do not meet the criteria in paragraph [852-10-45-19](https://asc.understandingaccounting.org/asc/852/10/#852-10-45-19) do not qualify for fresh-start reporting. Liabilities compromised by confirmed plans shall be stated at present values of amounts to be paid, determined at appropriate current interest rates. Forgiveness of debt, if any, shall be reported as an extinguishment of debt and classified in accordance with Subtopic 220-20.