# ASC 852-10-50: Reorganizations — Overall — 50 Disclosure Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/852/10/#50-disclosure) 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): 2026-09-10T02:03:15.208Z to 2026-09-10T02:03:15.208Z Record version: sha256:fc66a2919fa9c3c32fd4304751d3b477a81785f3e11dbc55c305e1dd3bcc65b3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 852-10-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/852/10/#50-disclosure) SEC content: no ##### [852-10-50-1](https://asc.understandingaccounting.org/asc/852/10/#852-10-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:03:15.208Z to 2026-09-10T02:03:15.208Z Record version: sha256:35985804b2d5f6772c17670e74accfab6d97e68af70e8601469c1a1994e1aecf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Section provides incremental disclosure guidance for entities with transactions within the scope of this Subtopic. It is incremental to disclosure guidance otherwise applicable to an entity under other generally accepted accounting principles (GAAP). #### Financial Reporting during Reorganization Proceedings ##### [852-10-50-2](https://asc.understandingaccounting.org/asc/852/10/#852-10-50-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:03:15.208Z to 2026-09-10T02:03:15.208Z Record version: sha256:94604ad5a5638be77899df07c6face6bd176e2522cb5a453471f50ca4751399d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The notes to financial statements of an entity in Chapter 11 shall disclose both of the following: 1. a [Claims](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.") not subject to reasonable estimation based on the provisions of Subtopic 450-20 2. b The principal categories of the claims subject to compromise. ##### [852-10-50-3](https://asc.understandingaccounting.org/asc/852/10/#852-10-50-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:03:15.208Z to 2026-09-10T02:03:15.208Z Record version: sha256:604d5440151671640f2daa70a6ae14d4ec4da1899e0c9d5a29d0e6c573974a00 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The extent to which reported interest expense differs from stated contractual interest shall be disclosed. It may be appropriate to disclose this parenthetically on the face of the statement of operations. ##### [852-10-50-4](https://asc.understandingaccounting.org/asc/852/10/#852-10-50-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:03:15.208Z to 2026-09-10T02:03:15.208Z Record version: sha256:ab601e37ebd8bdc968e8c5f6beea886ff594923a1a8cf62a75e5ef68b73ed3d1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Intra-entity receivables and payables of entities in reorganization proceedings shall be disclosed in the condensed combined financial statements referred to in paragraph [852-10-45-14](https://asc.understandingaccounting.org/asc/852/10/#852-10-45-14). ##### [852-10-50-5](https://asc.understandingaccounting.org/asc/852/10/#852-10-50-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:03:15.208Z to 2026-09-10T02:03:15.208Z Record version: sha256:783a5e4cb061214bb297bf731d4522c57049d1f46a974c182f393899e6e9ff24 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [852-10-45-16](https://asc.understandingaccounting.org/asc/852/10/#852-10-45-16) identifies a situation in which disclosure of a probable issuance of common stock or common stock equivalents is required. ##### [852-10-50-6](https://asc.understandingaccounting.org/asc/852/10/#852-10-50-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:03:15.208Z to 2026-09-10T02:03:15.208Z Record version: sha256:73354fdcd1611f2efdc5e6a6b71a9ed0ea2f7b04e544a36218596de3c6f36734 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](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."). ##### [852-10-50-6A](https://asc.understandingaccounting.org/asc/852/10/#852-10-50-6A) Pending content: no Source downloaded (UTC): 2026-09-10T02:03:15.208Z to 2026-09-10T02:03:15.208Z Record version: sha256:4b048d6f5bdf892169d5ccd957e8ccf42bbda9992bcebf4fbeb8a802d626d97b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the indirect method is used to prepare the statement of cash flows, 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 [852-10-45-13](https://asc.understandingaccounting.org/asc/852/10/#852-10-45-13).) #### Financial Reporting When Entities Emerge from Chapter 11 Reorganization and Adopt Fresh-Start Reporting ##### [852-10-50-7](https://asc.understandingaccounting.org/asc/852/10/#852-10-50-7) Pending content: no Source downloaded (UTC): 2026-09-10T02:03:15.208Z to 2026-09-10T02:03:15.208Z Record version: sha256:90a4c7a67260e011b3f7e44f217516aee5bc811e627ab3f35b83e7604a1153d1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [852-10-45-21](https://asc.understandingaccounting.org/asc/852/10/#852-10-45-21) requires additional information to be disclosed in the notes to the initial fresh-start financial statements when fresh-start reporting is adopted. That additional information consists of all of the following: 1. a Adjustments to the historical amounts of individual assets and liabilities 2. b The amount of debt forgiveness 3. c Significant matters relating to the determination of [reorganization value](https://asc.understandingaccounting.org/glossary/r/#reorganization-value "The value attributed to the reconstituted entity, as well as the expected net realizable value of those assets that will be disposed of before reconstitution occurs. Therefore, this value is viewed as the value of the entity before considering liabilities and approximates the amount a willing buyer would pay for the assets of the entity immediately after the restructuring."), including all of the following: 1. 1 The method or methods used to determine reorganization value and factors such as discount rates, tax rates, the number of years for which cash flows are projected, and the method of determining [terminal value](https://asc.understandingaccounting.org/glossary/t/#terminal-value "A component of reorganization value.Reorganization value calculated based on the discounting of cash flows normally consists of three parts; the discounted cash flows determined for the forecast period, the residual value or terminal value, and the current value of any excess working capital or other assets that are not needed in reorganization. Terminal or residual value represents the present value of the business attributable to the period beyond the forecast period.") 2. 2 Sensitive assumptions—that is, assumptions about which there is a reasonable possibility of the occurrence of a variation that would have significantly affected measurement of reorganization value 3. 3 Assumptions about anticipated conditions that are expected to be different from current conditions, unless otherwise apparent. ##### [852-10-50-8](https://asc.understandingaccounting.org/asc/852/10/#852-10-50-8) Pending content: no Source downloaded (UTC): 2026-09-10T02:03:15.208Z to 2026-09-10T02:03:15.208Z Record version: sha256:03314b1160ae6c629a7358019b88cdb7e66d440dc3b9ece10a75f810f8e800d7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/).