{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/852/10/","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.","number":"852-10","topic":"852","title":"Overall","area":"Broad Transactions","paragraphs":76,"summary":"ASC 852-10 governs financial reporting by entities that have filed a Chapter 11 petition and expect to reorganize as going concerns, plus their reporting upon emergence under a confirmed plan. During the case, GAAP continues to apply but the statements must separate reorganization-related transactions from ongoing operations: prepetition liabilities subject to compromise are segregated on the balance sheet at expected allowed amounts, and reorganization items are shown separately in the income statement and cash flow statement. On emergence, an entity adopts fresh-start reporting only if reorganization value is less than postpetition liabilities plus allowed claims and pre-confirmation voting shareholders receive less than 50% of the emerging entity's voting shares.","concepts":["liabilities subject to compromise","reorganization items","fresh-start reporting","reorganization value","allowed claims","plan of reorganization confirmation","debtor-in-possession","forgiveness of debt"],"categories":["Financial statement presentation","Disclosure","Debt and equity","Cash flows"],"level":"advanced","topic_title":"Reorganizations","sections":[{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"852-10-00-1","para":"00-1","html":"
The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Plan (1st def.)SupersededAccounting Standards Update No. 2014-0603/14/2014
Plan of Reorganization (formerly Plan (1st def.))AddedAccounting Standards Update No. 2014-0603/14/2014
Reorganization ValueAmendedAccounting Standards Update No. 2012-0410/01/2012
852-10-05-3AmendedAccounting Standards Update No. 2014-0603/14/2014
852-10-45-4AmendedAccounting Standards Update No. 2014-0603/14/2014
852-10-45-9AmendedAccounting Standards Update No. 2015-0101/09/2015
852-10-45-13AmendedAccounting Standards Update No. 2020-1010/29/2020
852-10-45-21AmendedMaintenance Update 2017-19 (PDF)11/15/2017
852-10-45-29AmendedMaintenance Update 2017-19 (PDF)11/15/2017
852-10-50-6AAddedAccounting Standards Update No. 2020-1010/29/2020
852-10-55-3AmendedAccounting Standards Update No. 2025-1212/17/2025
852-10-55-9 through 55-11
AmendedAccounting Standards Update No. 2025-1212/17/2025
852-10-55-9AmendedMaintenance Update 2020-18 (PDF)11/25/2020
852-10-55-10AmendedMaintenance Update 2020-18 (PDF)11/25/2020
852-10-55-10AmendedAccounting Standards Update No. 2012-0410/01/2012
852-10-55-11AmendedMaintenance Update 2016-11 (PDF)06/27/2016
852-10-55-11AmendedAccounting Standards Update No. 2012-0410/01/2012
852-10-60-1AmendedAccounting Standards Update No. 2013-0704/22/2013
","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\nPlan (1st def.) | Superseded | Accounting Standards Update No. 2014-06 | 03/14/2014 |\nPl…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ab0f621c5160fdf4b32516b9dbd14f3ec2a1c21af600441b4c2f3aa69c80ecf2","downloaded_from":"2026-09-10T02:02:52.609Z","last_downloaded_at":"2026-09-10T02:02:52.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481207","source_sha256":"a366a1475da2f5d35973b4be868007d8b88566df12239edb20c92456e58b9608"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ae354a3c1d99242e4610be50d0e83b56e7095223506e9526892f0687e3382ae3","downloaded_from":"2026-09-10T02:02:52.609Z","last_downloaded_at":"2026-09-10T02:02:52.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481207","source_sha256":"a366a1475da2f5d35973b4be868007d8b88566df12239edb20c92456e58b9608"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d15f6ca0be54c03e50c563e1ccd8bee5df54c8431556427d8f694393cf869b28","downloaded_from":"2026-09-10T02:02:52.609Z","last_downloaded_at":"2026-09-10T02:02:52.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481207","source_sha256":"a366a1475da2f5d35973b4be868007d8b88566df12239edb20c92456e58b9608"}},{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"852-10-05-1","para":"05-1","html":"
The Reorganizations Topic includes the following Subtopics:
  1. a
    Overall
  2. b
    Quasi-Reorganizations
  3. c
    Income Taxes.
","snippet":"The Reorganizations Topic includes the following Subtopics:\n(a) Overall\n(b) Quasi-Reorganizations\n(c) Income Taxes.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4e8ef81f172250f86386391e3e0d216c534f73b32a8972a8789529af64be48c4","downloaded_from":"2026-09-10T02:02:55.129Z","last_downloaded_at":"2026-09-10T02:02:55.129Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481181","source_sha256":"ec3c092fd6c62d6b638bba79eb2b2b5b277d9b918baf313a526b5666c27ecaa1"}},{"citation":"852-10-05-2","para":"05-2","html":"
This Subtopic addresses the accounting and financial statement disclosure for entities that have filed petitions with the Bankruptcy Court and expect to reorganize as going concerns under Chapter 11 of the Bankruptcy Code. This Subtopic necessarily contains many references to provisions of the Bankruptcy Code; however, the material in this Subtopic should not be relied upon as definitive interpretations of the law for any purposes. The accounting and reporting guidance in this Subtopic is incremental to guidance that otherwise applies to an entity.
","snippet":"This Subtopic addresses the accounting and financial statement disclosure for entities that have filed petitions with the Bankruptcy Court and expect to reorganize as going concerns under Chapter 11 of the Bankruptcy Cod…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6ae6a6a289395352208a051129d353c925a4ac98f0f691ff15d50c8f7a8b731a","downloaded_from":"2026-09-10T02:02:55.129Z","last_downloaded_at":"2026-09-10T02:02:55.129Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481181","source_sha256":"ec3c092fd6c62d6b638bba79eb2b2b5b277d9b918baf313a526b5666c27ecaa1"}},{"citation":"852-10-05-3","para":"05-3","html":"
An entity enters reorganization under Chapter 11 by filing a petition with the Bankruptcy Court, an adjunct of the United States District Courts. The filing of the petition starts the reorganization proceeding. The goal of the proceeding is to maximize recovery by creditors and shareholders by preserving it as a viable entity with a going concern value. For that purpose, the entity prepares a plan of reorganization intended to be confirmed by the court. The plan provides for treatment of all the assets and liabilities of the debtor, which might result in forgiveness of indebtedness. For the plan to be confirmed and the reorganization proceedings thereby concluded, the consideration to be received by parties in interest under the plan must exceed the consideration they would otherwise receive on liquidation of the entity under Chapter 7 of the Bankruptcy Code. The court may confirm a plan even if some classes of creditors or some of the stockholders have not accepted it, provided that it meets standards of fairness required by Chapter 11 to the dissenting class of creditors or the dissenting stockholders.
","snippet":"An entity enters reorganization under Chapter 11 by filing a petition with the Bankruptcy Court, an adjunct of the United States District Courts. The filing of the petition starts the reorganization proceeding. The goal …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7170f19d8f79ea66ad28e51782ee338a8210c74c83488a806c070c9c7051bfec","downloaded_from":"2026-09-10T02:02:55.129Z","last_downloaded_at":"2026-09-10T02:02:55.129Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481181","source_sha256":"ec3c092fd6c62d6b638bba79eb2b2b5b277d9b918baf313a526b5666c27ecaa1"}},{"citation":"852-10-05-4","para":"05-4","html":"
The plan is the heart of every Chapter 11 reorganization. The provisions of the plan specify the treatment of all creditors and equity holders upon its approval by the Bankruptcy Court. Moreover, the plan shapes the financial structure of the entity that emerges.
","snippet":"The plan is the heart of every Chapter 11 reorganization. The provisions of the plan specify the treatment of all creditors and equity holders upon its approval by the Bankruptcy Court. Moreover, the plan shapes the fina…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0dd13eb30188c0ebbeb78c26573e823d17dec9f26939272cc71b20fef73d3e5b","downloaded_from":"2026-09-10T02:02:55.129Z","last_downloaded_at":"2026-09-10T02:02:55.129Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481181","source_sha256":"ec3c092fd6c62d6b638bba79eb2b2b5b277d9b918baf313a526b5666c27ecaa1"}},{"citation":"852-10-05-5","para":"05-5","html":"
Chapter 11 provides that, unless a trustee is appointed, the debtor has the exclusive right to file a plan for the first 120 days of the case, or such longer or shorter time as the Bankruptcy Court decrees, for cause. If a plan is filed within the exclusive period, additional time is provided to allow the debtor to obtain plan acceptance. The appointment of the trustee immediately terminates the debtor's exclusive right to file a plan, and any party in interest may then do so.
","snippet":"Chapter 11 provides that, unless a trustee is appointed, the debtor has the exclusive right to file a plan for the first 120 days of the case, or such longer or shorter time as the Bankruptcy Court decrees, for cause. If…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:27acdd67a0c9db7fbf5d88ae065d824ee98c6d0b80540c4c04e33af2dd3220e3","downloaded_from":"2026-09-10T02:02:55.129Z","last_downloaded_at":"2026-09-10T02:02:55.129Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481181","source_sha256":"ec3c092fd6c62d6b638bba79eb2b2b5b277d9b918baf313a526b5666c27ecaa1"}},{"citation":"852-10-05-6","para":"05-6","html":"
Except to the extent that specific debts are determined by the Bankruptcy Court not to be discharged by the plan, the provisions of a confirmed plan bind the debtor, any entity issuing securities under the plan, any entity acquiring assets under the plan, and any creditor, equity security holder, or general partner in the debtor, regardless of whether the claim is impaired under the plan and whether such creditor, equity security holder, or general partner has accepted the plan. A claim is impaired if, subject to certain rights to cure defaults, its legal rights are affected adversely by the plan.
","snippet":"Except to the extent that specific debts are determined by the Bankruptcy Court not to be discharged by the plan, the provisions of a confirmed plan bind the debtor, any entity issuing securities under the plan, any enti…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:87611302f00a10589dc017138318e26a8722adf6344a59c9465323bf01decaf5","downloaded_from":"2026-09-10T02:02:55.129Z","last_downloaded_at":"2026-09-10T02:02:55.129Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481181","source_sha256":"ec3c092fd6c62d6b638bba79eb2b2b5b277d9b918baf313a526b5666c27ecaa1"}},{"citation":"852-10-05-7","para":"05-7","html":"
In general, except as provided in the plan or in the order confirming the plan, confirmation of the plan discharges the debtor from all preconfirmation claims and terminates all rights and interest of equity security holders or general partners as provided for in the plan.
","snippet":"In general, except as provided in the plan or in the order confirming the plan, confirmation of the plan discharges the debtor from all preconfirmation claims and terminates all rights and interest of equity security hol…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7aa53606e06167e2411d830a5dce7a96b2c560f830c129328ce0416217f806cb","downloaded_from":"2026-09-10T02:02:55.129Z","last_downloaded_at":"2026-09-10T02:02:55.129Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481181","source_sha256":"ec3c092fd6c62d6b638bba79eb2b2b5b277d9b918baf313a526b5666c27ecaa1"}},{"citation":"852-10-05-8","para":"05-8","html":"
The Bankruptcy Court confirms a plan if it finds all of the following:
  1. a
    The plan and the plan proponent have complied with various technical requirements of the Bankruptcy Code.
  2. b
    Disclosures made in soliciting acceptance of the plan have been adequate.
  3. c
    Dissenting members of consenting classes of impaired claims would receive under the plan at least the amount they would have received under a Chapter 7 proceeding.
  4. d
    Claims entitled to priority under the Bankruptcy Code will be paid in cash.
  5. e
    Confirmation of the plan is not likely to be followed by liquidation or further reorganization.
  6. f
    At least one class of impaired claims, apart from insiders, has accepted the plan.
  7. g
    The plan proponent has obtained the consent of all impaired classes of claims or equity securities, or the plan proponent can comply with the cram-down provisions of the Bankruptcy Code. Under the cram-down provisions, the court may confirm a plan even if one or more classes of holders of impaired claims or equity securities do not accept it, as long as the court finds the plan does not discriminate unfairly and is fair and equitable to each nonconsenting class impaired by the plan.
","snippet":"The Bankruptcy Court confirms a plan if it finds all of the following:\n(a) The plan and the plan proponent have complied with various technical requirements of the Bankruptcy Code.\n(b) Disclosures made in soliciting acce…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:580b08c5691890b50bcbc4ee51c55c1b25bd8d9646c40ae7d4873503374381cf","downloaded_from":"2026-09-10T02:02:55.129Z","last_downloaded_at":"2026-09-10T02:02:55.129Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481181","source_sha256":"ec3c092fd6c62d6b638bba79eb2b2b5b277d9b918baf313a526b5666c27ecaa1"}},{"citation":"852-10-05-9","para":"05-9","html":"
In general, a secured claim is deemed to be treated fairly and equitably if it remains adequately collateralized and will receive a stream of payments whose discounted value equals the amount of the secured claim on the effective date of the plan. In general, an unsecured claim is deemed to be treated fairly and equitably if it receives assets whose discounted value equals the allowed amount of the claim, or if the holder of any claim or equity security interest that is junior to the dissenting class will not receive or retain any assets under the plan. Similarly, an equity security interest is deemed fairly and equitably treated if that interest receives assets whose discounted value equals the greatest of any fixed liquidation preference, any fixed redemption price, or the value of such interest, or if no junior equity security interest will receive any assets under the plan.
","snippet":"In general, a secured claim is deemed to be treated fairly and equitably if it remains adequately collateralized and will receive a stream of payments whose discounted value equals the amount of the secured claim on the …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b567ef55a2c2fd9f9ecf6c318fdfed332a25984d53eef56a9b851e8703164fb9","downloaded_from":"2026-09-10T02:02:55.129Z","last_downloaded_at":"2026-09-10T02:02:55.129Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481181","source_sha256":"ec3c092fd6c62d6b638bba79eb2b2b5b277d9b918baf313a526b5666c27ecaa1"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8752df2d338e9de0ab2485f7d5119e6b32e7124245bcc4a928d6f0ad611c63c2","downloaded_from":"2026-09-10T02:02:55.129Z","last_downloaded_at":"2026-09-10T02:02:55.129Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481181","source_sha256":"ec3c092fd6c62d6b638bba79eb2b2b5b277d9b918baf313a526b5666c27ecaa1"}},{"block":null,"heading":"Reorganization Value","paragraphs":[{"citation":"852-10-05-10","para":"05-10","html":"
An important part of the process of developing a plan is the determination of the reorganization value of the entity that emerges from bankruptcy. Reorganization value generally approximates fair 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. The reorganization value of an entity is the amount of resources available and to become available for the satisfaction of postpetition liabilities and allowed claims and interest, as negotiated or litigated between the debtor-in-possession or trustee, the creditors, and the holders of equity interests. Reorganization value includes the sum of the value attributed to the reconstituted entity and other assets of the debtor that will not be included in the reconstituted entity. Reorganization value and the terms of the plan are determined only after extensive arm's-length negotiations or litigation between the interested parties. Before the negotiations, the debtor-in-possession, creditors, and equity holders develop their own ideas on the reorganization value of the entity that will emerge from Chapter 11. Several methods are used to determine the reorganization value; however, generally it is determined by discounting future cash flows for the reconstituted business that will emerge from Chapter 11 and from expected proceeds or collections from assets not required in the reconstituted business, at rates reflecting the business and financial risks involved.
","snippet":"An important part of the process of developing a plan is the determination of the reorganization value of the entity that emerges from bankruptcy. Reorganization value generally approximates fair value of the entity befo…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:65f44fa7335826fb7cd0c286dac875dd5980044daafa8e2388f90dae73c05a61","downloaded_from":"2026-09-10T02:02:55.129Z","last_downloaded_at":"2026-09-10T02:02:55.129Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481181","source_sha256":"ec3c092fd6c62d6b638bba79eb2b2b5b277d9b918baf313a526b5666c27ecaa1"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:769533947023f98edbca0f981bb8db7c4da0018fcafb7bfde0257a14dffb72d6","downloaded_from":"2026-09-10T02:02:55.129Z","last_downloaded_at":"2026-09-10T02:02:55.129Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481181","source_sha256":"ec3c092fd6c62d6b638bba79eb2b2b5b277d9b918baf313a526b5666c27ecaa1"}},{"block":null,"heading":"The Disclosure Statement","paragraphs":[{"citation":"852-10-05-11","para":"05-11","html":"
A disclosure statement approved by the court is transmitted to all parties entitled to vote on the plan at or before the time their acceptance of the plan is solicited. The disclosure statement provides information that enables them to make informed judgments about the plan.
","snippet":"A disclosure statement approved by the court is transmitted to all parties entitled to vote on the plan at or before the time their acceptance of the plan is solicited. The disclosure statement provides information that …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e38a9fe9f54eafedd041fee536d90b35ffafa0e1e7866a9576c96fd1bee681e1","downloaded_from":"2026-09-10T02:02:55.129Z","last_downloaded_at":"2026-09-10T02:02:55.129Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481181","source_sha256":"ec3c092fd6c62d6b638bba79eb2b2b5b277d9b918baf313a526b5666c27ecaa1"}},{"citation":"852-10-05-12","para":"05-12","html":"
No postpetition solicitation of acceptance of a plan may be made unless by the time of the solicitation a disclosure statement previously approved by the Bankruptcy Court has been sent to those whose acceptance is required. The disclosure statement must contain adequate information, which is defined in the Bankruptcy Code as information that would enable a hypothetical reasonable investor typical of holders of claims or interests of the relevant class to make an informed judgment about the plan, as far as it is reasonably practicable to provide in light of the nature and history of the emerging entity and the condition of the emerging entity's records. Examples of the kinds of items that may be included in disclosure statements to provide such information include a summary of the reorganization plan, historical and prospective financial information, and a pro forma balance sheet reporting the reorganization value and the capital structure of the emerging entity.
","snippet":"No postpetition solicitation of acceptance of a plan may be made unless by the time of the solicitation a disclosure statement previously approved by the Bankruptcy Court has been sent to those whose acceptance is requir…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7adf9c1968e22fae5b158b401a0ba09b219d662190eb602c3dc627b9f9f7a275","downloaded_from":"2026-09-10T02:02:55.129Z","last_downloaded_at":"2026-09-10T02:02:55.129Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481181","source_sha256":"ec3c092fd6c62d6b638bba79eb2b2b5b277d9b918baf313a526b5666c27ecaa1"}},{"citation":"852-10-05-13","para":"05-13","html":"
What constitutes adequate information depends on the circumstances of the entity in Chapter 11, the nature of the plan, and the sophistication of the various classes whose acceptance is required. Although a valuation is not required for a Bankruptcy Court's approval of a disclosure statement, the instances in which valuations are not made are generally restricted to those in which the reorganization value of the emerging entity is greater than the liabilities or in which holders of existing voting shares retain more than 50 percent of the emerging entity's voting shares when the entity emerges from reorganization.
","snippet":"What constitutes adequate information depends on the circumstances of the entity in Chapter 11, the nature of the plan, and the sophistication of the various classes whose acceptance is required. Although a valuation is …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:25dc19de40d974ee946ecdb07ffd1613382162cdea69793295c1fc8cccfff8ad","downloaded_from":"2026-09-10T02:02:55.129Z","last_downloaded_at":"2026-09-10T02:02:55.129Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481181","source_sha256":"ec3c092fd6c62d6b638bba79eb2b2b5b277d9b918baf313a526b5666c27ecaa1"}},{"citation":"852-10-05-14","para":"05-14","html":"
After reorganization proceedings have started, acceptances of a plan may not be solicited by any person without a disclosure statement approved by the court, but acceptances obtained before the proceedings started may be counted if they were solicited in compliance with applicable nonbankruptcy law governing the adequacy of disclosure or there is not any applicable nonbankruptcy law but there was in fact adequate information provided at the time of the prebankruptcy solicitation of acceptances of the plan.
","snippet":"After reorganization proceedings have started, acceptances of a plan may not be solicited by any person without a disclosure statement approved by the court, but acceptances obtained before the proceedings started may be…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:00926ed759bd46e5cc602d5bf38a8bfa232315c300c788ac6d42264176ca5422","downloaded_from":"2026-09-10T02:02:55.129Z","last_downloaded_at":"2026-09-10T02:02:55.129Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481181","source_sha256":"ec3c092fd6c62d6b638bba79eb2b2b5b277d9b918baf313a526b5666c27ecaa1"}},{"citation":"852-10-05-15","para":"05-15","html":"
While the court determines the adequacy of the disclosure statement, entities that expect to adopt fresh-start reporting (see Section 852-10-45 for guidance on what is referred to as fresh-start reporting) should report information about the reorganization value in the disclosure statement, so that creditors and stockholders can make an informed judgment about the plan. The most likely place to report the reorganization value is in the pro forma balance sheet that is commonly part of the disclosure statement. Because reorganization value may not have been allocated to individual assets concurrently with the preparation of the pro forma balance sheet included in the disclosure statement in some cases, it may be necessary to include in the pro forma balance sheet a separate line item to reflect the difference of the total reorganization value of the emerging entity over recorded amounts. When possible, reorganization value should be segregated into major categories.
","snippet":"While the court determines the adequacy of the disclosure statement, entities that expect to adopt fresh-start reporting (see Section 852-10-45 for guidance on what is referred to as fresh-start reporting) should report …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c4631e6537726739da799b2392e612cc3ab9287fa1e377a888b07c958de39429","downloaded_from":"2026-09-10T02:02:55.129Z","last_downloaded_at":"2026-09-10T02:02:55.129Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481181","source_sha256":"ec3c092fd6c62d6b638bba79eb2b2b5b277d9b918baf313a526b5666c27ecaa1"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:52365d5bfb28ccb67aaccc4c7e818ce190cf4e498648082f837513003310e35d","downloaded_from":"2026-09-10T02:02:55.129Z","last_downloaded_at":"2026-09-10T02:02:55.129Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481181","source_sha256":"ec3c092fd6c62d6b638bba79eb2b2b5b277d9b918baf313a526b5666c27ecaa1"}},{"block":null,"heading":"The Financial Reporting Consequences of the Absolute Priority Doctrine","paragraphs":[{"citation":"852-10-05-16","para":"05-16","html":"
Under the absolute priority doctrine of the Bankruptcy Code, if the amount of postpetition liabilities and allowed claims exceeds the reorganization value of the emerging entity, existing shareholders lose their legal right to any economic interest without the consent of creditors. Therefore, any equity interest in the emerging entity ultimately held by existing shareholders is given to them by the creditors. Among the reasons the creditors might give such shareholders equity interests in the emerging entity are to avoid the expensive and time-consuming legal proceedings necessary to implement the cram-down provisions of the Bankruptcy Code or to preserve continuity of management. Consequently, in this situation, if all of the conditions stated in paragraph 852-10-45-19 are met, then upon an entity's emergence from Chapter 11, this Subtopic requires the entity to adopt fresh-start reporting.
","snippet":"Under the absolute priority doctrine of the Bankruptcy Code, if the amount of postpetition liabilities and allowed claims exceeds the reorganization value of the emerging entity, existing shareholders lose their legal ri…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:160dffa31530152c4a89e1668055190a771a89d5f8bb65beea37d41e49603e63","downloaded_from":"2026-09-10T02:02:55.129Z","last_downloaded_at":"2026-09-10T02:02:55.129Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481181","source_sha256":"ec3c092fd6c62d6b638bba79eb2b2b5b277d9b918baf313a526b5666c27ecaa1"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:db4c78b0809c0010f82c7ec1ed4f2e51ba28eb1bd66cb0bddb5aab34927b8b40","downloaded_from":"2026-09-10T02:02:55.129Z","last_downloaded_at":"2026-09-10T02:02:55.129Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481181","source_sha256":"ec3c092fd6c62d6b638bba79eb2b2b5b277d9b918baf313a526b5666c27ecaa1"}},{"block":null,"heading":"Terms","paragraphs":[{"citation":"852-10-05-17","para":"05-17","html":"
The following terms are widely used when addressing reorganizations, yet are not included in the text of the standards:
  1. a
    Administrative expenses
  2. b
    Obligations subject to compromise
  3. c
    Undersecured claim.
","snippet":"The following terms are widely used when addressing reorganizations, yet are not included in the text of the standards:\n(a) Administrative expenses\n(b) Obligations subject to compromise\n(c) Undersecured claim.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:412bc5ddefed68bcf1c01ab388c8d9bf3997afd08b52b4f965926808f5bf37bb","downloaded_from":"2026-09-10T02:02:55.129Z","last_downloaded_at":"2026-09-10T02:02:55.129Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481181","source_sha256":"ec3c092fd6c62d6b638bba79eb2b2b5b277d9b918baf313a526b5666c27ecaa1"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cd2f9e9ebffa50f59cf0033223ad44c6c50849c1bcc4bcabc387b62f03a95ea4","downloaded_from":"2026-09-10T02:02:55.129Z","last_downloaded_at":"2026-09-10T02:02:55.129Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481181","source_sha256":"ec3c092fd6c62d6b638bba79eb2b2b5b277d9b918baf313a526b5666c27ecaa1"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cb16dfa6a7b149616227466c377214d8ef3fd5fe40e67791cdf3594755ee9f8c","downloaded_from":"2026-09-10T02:02:55.129Z","last_downloaded_at":"2026-09-10T02:02:55.129Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481181","source_sha256":"ec3c092fd6c62d6b638bba79eb2b2b5b277d9b918baf313a526b5666c27ecaa1"}},{"number":"10","label":"10 Objectives","anchor":"10-objectives","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"852-10-10-1","para":"10-1","html":"
Presenting an entity's financial evolution in its financial statements during a Chapter 11 reorganization proceeding is an objective of the guidance in this Subtopic.
","snippet":"Presenting an entity's financial evolution in its financial statements during a Chapter 11 reorganization proceeding is an objective of the guidance in this Subtopic.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:110bed47ebbca5645e0b59dc23a2d44327665a3b81a83d35d6e6f0d9c4476a6c","downloaded_from":"2026-09-10T02:02:57.483Z","last_downloaded_at":"2026-09-10T02:02:57.483Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481156","source_sha256":"303bd2113f37fa49301451fa91ba5999243ead4064e0aab8d018da934b346aa6"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:aff8f7e6367f90347232a4194ebbdde9a090a8733fe812657c713b692710e1fa","downloaded_from":"2026-09-10T02:02:57.483Z","last_downloaded_at":"2026-09-10T02:02:57.483Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481156","source_sha256":"303bd2113f37fa49301451fa91ba5999243ead4064e0aab8d018da934b346aa6"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e2828a2048c3e189785e358a12d36ba37803ed7bf9034f9f7264f3ea9ea6e1fa","downloaded_from":"2026-09-10T02:02:57.483Z","last_downloaded_at":"2026-09-10T02:02:57.483Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481156","source_sha256":"303bd2113f37fa49301451fa91ba5999243ead4064e0aab8d018da934b346aa6"}},{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Entities","paragraphs":[{"citation":"852-10-15-1","para":"15-1","html":"
This Subtopic provides guidance on financial reporting by entities that have filed petitions with the Bankruptcy Court and expect to reorganize as going concerns under Chapter 11 of title 11 of the United States Code. The guidance in this Subtopic applies to all entities except governmental organizations.
","snippet":"This Subtopic provides guidance on financial reporting by entities that have filed petitions with the Bankruptcy Court and expect to reorganize as going concerns under Chapter 11 of title 11 of the United States Code. Th…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:05b06e5386a22190132bdad11f26b4a86dd6dc4ce5b779ddf6406b32db1ba946","downloaded_from":"2026-09-10T02:03:01.101Z","last_downloaded_at":"2026-09-10T02:03:01.101Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481124","source_sha256":"289a2da5a87862082f0f18de2c5c35f38293110330b19256ea315d9d5aa32b96"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5ccf9baa0dd3a0d6043c7895237708fca84ccba9d50c0b7f4fe0e566b7d2f8f5","downloaded_from":"2026-09-10T02:03:01.101Z","last_downloaded_at":"2026-09-10T02:03:01.101Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481124","source_sha256":"289a2da5a87862082f0f18de2c5c35f38293110330b19256ea315d9d5aa32b96"}},{"block":null,"heading":"Transactions","paragraphs":[{"citation":"852-10-15-2","para":"15-2","html":"
The guidance in this Subtopic applies to the following transactions and activities:
  1. a
    Reorganizations by entities that expect to reorganize as a going concern under Chapter 11
  2. b
    Reorganizations by entities upon emergence from Chapter 11 under confirmed plans.
","snippet":"The guidance in this Subtopic applies to the following transactions and activities:\n(a) Reorganizations by entities that expect to reorganize as a going concern under Chapter 11\n(b) Reorganizations by entities upon emerg…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d93a0f9975e4bcb9b320836e0305743c45217b20d7ca1d9d55239a6230769ea2","downloaded_from":"2026-09-10T02:03:01.101Z","last_downloaded_at":"2026-09-10T02:03:01.101Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481124","source_sha256":"289a2da5a87862082f0f18de2c5c35f38293110330b19256ea315d9d5aa32b96"}},{"citation":"852-10-15-3","para":"15-3","html":"
The guidance in this Subtopic does not apply to the following transactions and activities:
  1. a
    Debt restructurings outside of Chapter 11
  2. b
    Reorganization activities consisting of liquidation or adoption of plans of liquidation under the Bankruptcy Code.
","snippet":"The guidance in this Subtopic does not apply to the following transactions and activities:\n(a) Debt restructurings outside of Chapter 11\n(b) Reorganization activities consisting of liquidation or adoption of plans of liq…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6b109599fb8ab198dd8c941a234e217c40e3b3ab591014423eb7010c1bd7330a","downloaded_from":"2026-09-10T02:03:01.101Z","last_downloaded_at":"2026-09-10T02:03:01.101Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481124","source_sha256":"289a2da5a87862082f0f18de2c5c35f38293110330b19256ea315d9d5aa32b96"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b9b5fcbac96956afac6d78cb57267fd55e76cc06f255f35efb00678f8003c598","downloaded_from":"2026-09-10T02:03:01.101Z","last_downloaded_at":"2026-09-10T02:03:01.101Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481124","source_sha256":"289a2da5a87862082f0f18de2c5c35f38293110330b19256ea315d9d5aa32b96"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fa37945d1089ca3b24391391fb10a1718a6b99e7cf51cdfb8e5207fe3a7287a4","downloaded_from":"2026-09-10T02:03:01.101Z","last_downloaded_at":"2026-09-10T02:03:01.101Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481124","source_sha256":"289a2da5a87862082f0f18de2c5c35f38293110330b19256ea315d9d5aa32b96"}},{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"852-10-25-1","para":"25-1","html":"
As explained in paragraph 852-10-45-1, entering a reorganization proceeding, 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.
","snippet":"As explained in paragraph 852-10-45-1, entering a reorganization proceeding, although a significant event, does not ordinarily affect or change the application of generally accepted accounting principles (GAAP) followed …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3cfd4e79b33bea890b467c70231b6ae6c61402c6dec86104a86427bf515bf7ab","downloaded_from":"2026-09-10T02:03:08.094Z","last_downloaded_at":"2026-09-10T02:03:08.094Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481064","source_sha256":"f12d11c685ed48f819fabd4af656ffca686c57eb3fa5cc3ee734ba9de44c48b9"}},{"citation":"852-10-25-2","para":"25-2","html":"
See Section 852-10-45 for financial statement presentation guidance applicable to entities during and after reorganization proceedings.
","snippet":"See Section 852-10-45 for financial statement presentation guidance applicable to entities during and after reorganization proceedings.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ec29c52baf517bebcd52c89ac6125b61bc82f5bd1d205402bcd2a8dd96562298","downloaded_from":"2026-09-10T02:03:08.094Z","last_downloaded_at":"2026-09-10T02:03:08.094Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481064","source_sha256":"f12d11c685ed48f819fabd4af656ffca686c57eb3fa5cc3ee734ba9de44c48b9"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:69780776ef90afde09f25292eb74edebac3538018518e48a898da1dd7977a254","downloaded_from":"2026-09-10T02:03:08.094Z","last_downloaded_at":"2026-09-10T02:03:08.094Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481064","source_sha256":"f12d11c685ed48f819fabd4af656ffca686c57eb3fa5cc3ee734ba9de44c48b9"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c216638c7cb66bbb1db172b2aa00e6e7f86337fb19ce837bb5e40cbeae43e14b","downloaded_from":"2026-09-10T02:03:08.094Z","last_downloaded_at":"2026-09-10T02:03:08.094Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481064","source_sha256":"f12d11c685ed48f819fabd4af656ffca686c57eb3fa5cc3ee734ba9de44c48b9"}},{"number":"30","label":"30 Initial Measurement","anchor":"30-initial-measurement","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"852-10-30-1","para":"30-1","html":"
As explained in paragraph 852-10-45-1, entering a reorganization proceeding, 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.
","snippet":"As explained in paragraph 852-10-45-1, entering a reorganization proceeding, although a significant event, does not ordinarily affect or change the application of generally accepted accounting principles (GAAP) followed …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d77d25f949dced3eadf678c7ed7fd77966bb606f5b03afe77fe11db3308bdbae","downloaded_from":"2026-09-10T02:03:09.960Z","last_downloaded_at":"2026-09-10T02:03:09.960Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481459","source_sha256":"0e8ee8d1469711e0cb1ea1f78a7253c4fc53dd7eef5c9598cc27cad145bd9182"}},{"citation":"852-10-30-2","para":"30-2","html":"
See Section 852-10-45 for financial statement presentation guidance applicable to entities during and after reorganization proceedings.
","snippet":"See Section 852-10-45 for financial statement presentation guidance applicable to entities during and after reorganization proceedings.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:45327a8f0d0903da5e6926167d4421b96d235c7649d5b2ad2ed4435073254cc7","downloaded_from":"2026-09-10T02:03:09.960Z","last_downloaded_at":"2026-09-10T02:03:09.960Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481459","source_sha256":"0e8ee8d1469711e0cb1ea1f78a7253c4fc53dd7eef5c9598cc27cad145bd9182"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:67d7d6bee878b75d3b3a0b29997762d1833922cb4220b4fafe301be8afca7c0c","downloaded_from":"2026-09-10T02:03:09.960Z","last_downloaded_at":"2026-09-10T02:03:09.960Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481459","source_sha256":"0e8ee8d1469711e0cb1ea1f78a7253c4fc53dd7eef5c9598cc27cad145bd9182"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b28dfde92568998b899b4d2c4811340eb915239987c5a7b83577cdba37361ab9","downloaded_from":"2026-09-10T02:03:09.960Z","last_downloaded_at":"2026-09-10T02:03:09.960Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481459","source_sha256":"0e8ee8d1469711e0cb1ea1f78a7253c4fc53dd7eef5c9598cc27cad145bd9182"}},{"number":"45","label":"45 Other Presentation Matters","anchor":"45-other-presentation-matters","is_sec":false,"groups":[{"block":null,"heading":"Financial Reporting during Reorganization Proceedings","paragraphs":[{"citation":"852-10-45-1","para":"45-1","html":"
Entering a reorganization proceeding, 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.
","snippet":"Entering a reorganization proceeding, 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…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5b29b0c7905113ee4033309e04a3e01b729e51dafd993c46a60306846362ed59","downloaded_from":"2026-09-10T02:03:11.975Z","last_downloaded_at":"2026-09-10T02:03:11.975Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481435","source_sha256":"c7ca1a9acb3f3cede3c83c51b4e8c00a350ee025a84bda7c97ba344baf0e2c4a"}},{"citation":"852-10-45-2","para":"45-2","html":"
For the purpose of presenting an entity's financial evolution during a Chapter 11 reorganization (see paragraph 852-10-10-1), the financial statements for periods including and after filing the Chapter 11 petition shall distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the business.
","snippet":"For the purpose of presenting an entity's financial evolution during a Chapter 11 reorganization (see paragraph 852-10-10-1), the financial statements for periods including and after filing the Chapter 11 petition shall …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:65d38b52f2b2dd889d290bca6d46b3d8957842aba24511f39939df6170a5a1f9","downloaded_from":"2026-09-10T02:03:11.975Z","last_downloaded_at":"2026-09-10T02:03:11.975Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481435","source_sha256":"c7ca1a9acb3f3cede3c83c51b4e8c00a350ee025a84bda7c97ba344baf0e2c4a"}},{"citation":"852-10-45-3","para":"45-3","html":"
Example 1 (see paragraph 852-10-55-2) provides an illustration of financial statements and notes thereto for an entity operating under Chapter 11.
","snippet":"Example 1 (see paragraph 852-10-55-2) provides an illustration of financial statements and notes thereto for an entity operating under Chapter 11.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d8f9fbed75e5108df5c7423541662c2f52cecb2733ab5a9e700d16c2369c621f","downloaded_from":"2026-09-10T02:03:11.975Z","last_downloaded_at":"2026-09-10T02:03:11.975Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481435","source_sha256":"c7ca1a9acb3f3cede3c83c51b4e8c00a350ee025a84bda7c97ba344baf0e2c4a"}},{"citation":"852-10-45-4","para":"45-4","html":"
The balance sheet of an entity in Chapter 11 shall distinguish prepetition liabilities subject to compromise from those that are not (such as fully secured liabilities that are expected not to be compromised) and postpetition 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 is undersecured, or will be impaired under the plan of reorganization, the entire amount of the claim 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.
","snippet":"The balance sheet of an entity in Chapter 11 shall distinguish prepetition liabilities subject to compromise from those that are not (such as fully secured liabilities that are expected not to be compromised) and postpet…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7bb6e56b1e4a64632c45b2581030ed699a4e2d743d8bb3005fb3a40b716ec0c5","downloaded_from":"2026-09-10T02:03:11.975Z","last_downloaded_at":"2026-09-10T02:03:11.975Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481435","source_sha256":"c7ca1a9acb3f3cede3c83c51b4e8c00a350ee025a84bda7c97ba344baf0e2c4a"}},{"citation":"852-10-45-5","para":"45-5","html":"
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 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 notes that claims not subject to reasonable estimation are required to be disclosed in the notes to financial statements.
","snippet":"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 in accordance with Subtopic 450-20, as opposed to the amo…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6e6fdadde1b0c824ff7c5efcd49b288285ee49f921f9e556a4181d6c3a2e580d","downloaded_from":"2026-09-10T02:03:11.975Z","last_downloaded_at":"2026-09-10T02:03:11.975Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481435","source_sha256":"c7ca1a9acb3f3cede3c83c51b4e8c00a350ee025a84bda7c97ba344baf0e2c4a"}},{"citation":"852-10-45-6","para":"45-6","html":"
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. 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.
","snippet":"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, …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:400a863bbcb73116b2cb47a3d0fd47b418882e1bdcc5983808f87d914929187e","downloaded_from":"2026-09-10T02:03:11.975Z","last_downloaded_at":"2026-09-10T02:03:11.975Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481435","source_sha256":"c7ca1a9acb3f3cede3c83c51b4e8c00a350ee025a84bda7c97ba344baf0e2c4a"}},{"citation":"852-10-45-7","para":"45-7","html":"
Paragraph 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.
","snippet":"Paragraph 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 liabiliti…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:51b2739b313a4c7800334bca4b6e03ef05f8b76258680139217f2c40b29b380e","downloaded_from":"2026-09-10T02:03:11.975Z","last_downloaded_at":"2026-09-10T02:03:11.975Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481435","source_sha256":"c7ca1a9acb3f3cede3c83c51b4e8c00a350ee025a84bda7c97ba344baf0e2c4a"}},{"citation":"852-10-45-8","para":"45-8","html":"
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 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.
","snippet":"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 cyc…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5e46d89ca98ece0c4aef80ff24df64bb96b613624ed3a011839fa5304ab5a5a6","downloaded_from":"2026-09-10T02:03:11.975Z","last_downloaded_at":"2026-09-10T02:03:11.975Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481435","source_sha256":"c7ca1a9acb3f3cede3c83c51b4e8c00a350ee025a84bda7c97ba344baf0e2c4a"}},{"citation":"852-10-45-9","para":"45-9","html":"
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, except for those required to be reported as discontinued operations in conformity with Subtopic 205-20.
","snippet":"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 losse…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b014dea8afff88d9e463beba391cdcea651208546db6bf5446a9d3d0cb37dd0e","downloaded_from":"2026-09-10T02:03:11.975Z","last_downloaded_at":"2026-09-10T02:03:11.975Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481435","source_sha256":"c7ca1a9acb3f3cede3c83c51b4e8c00a350ee025a84bda7c97ba344baf0e2c4a"}},{"citation":"852-10-45-10","para":"45-10","html":"
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.
","snippet":"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 ap…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2e47ace6cb8fc3a2585e4437c6e8cdff66c73cd62b0741e2f34d697bfcc9bdac","downloaded_from":"2026-09-10T02:03:11.975Z","last_downloaded_at":"2026-09-10T02:03:11.975Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481435","source_sha256":"c7ca1a9acb3f3cede3c83c51b4e8c00a350ee025a84bda7c97ba344baf0e2c4a"}},{"citation":"852-10-45-11","para":"45-11","html":"
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.
","snippet":"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 reorgani…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4b76420e4a51c473b5cf06bf86b1d2b64bfbb786e38ead6027cb62ea07318e6d","downloaded_from":"2026-09-10T02:03:11.975Z","last_downloaded_at":"2026-09-10T02:03:11.975Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481435","source_sha256":"c7ca1a9acb3f3cede3c83c51b4e8c00a350ee025a84bda7c97ba344baf0e2c4a"}},{"citation":"852-10-45-12","para":"45-12","html":"
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.
","snippet":"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.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fcde884d1d03931fbeaffbc101972a88467ac62c85ce02b7505bd3d3e13b012b","downloaded_from":"2026-09-10T02:03:11.975Z","last_downloaded_at":"2026-09-10T02:03:11.975Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481435","source_sha256":"c7ca1a9acb3f3cede3c83c51b4e8c00a350ee025a84bda7c97ba344baf0e2c4a"}},{"citation":"852-10-45-13","para":"45-13","html":"
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 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.)
","snippet":"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…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e268563cd9dccd13c3e770d6d5481aeef5659af66922ff696756dd7bb15bfb28","downloaded_from":"2026-09-10T02:03:11.975Z","last_downloaded_at":"2026-09-10T02:03:11.975Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481435","source_sha256":"c7ca1a9acb3f3cede3c83c51b4e8c00a350ee025a84bda7c97ba344baf0e2c4a"}},{"citation":"852-10-45-14","para":"45-14","html":"
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.
","snippet":"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 en…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c8a358365e6debb9ece089ae129ae7c5a7976e9365b17898c094c1511f9c4c71","downloaded_from":"2026-09-10T02:03:11.975Z","last_downloaded_at":"2026-09-10T02:03:11.975Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481435","source_sha256":"c7ca1a9acb3f3cede3c83c51b4e8c00a350ee025a84bda7c97ba344baf0e2c4a"}},{"citation":"852-10-45-15","para":"45-15","html":"
In addition to making the required paragraph 852-10-50-4 disclosures, the propriety of the carrying amounts of intra-entity receivables from entities in Chapter 11 shall be evaluated.
","snippet":"In addition to making the required paragraph 852-10-50-4 disclosures, the propriety of the carrying amounts of intra-entity receivables from entities in Chapter 11 shall be evaluated.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ff5cd6b84d4dc465208049b1a616a7db1cdb328bc7d3c6c63a002525b8d38538","downloaded_from":"2026-09-10T02:03:11.975Z","last_downloaded_at":"2026-09-10T02:03:11.975Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481435","source_sha256":"c7ca1a9acb3f3cede3c83c51b4e8c00a350ee025a84bda7c97ba344baf0e2c4a"}},{"citation":"852-10-45-16","para":"45-16","html":"
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.
","snippet":"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 equit…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ab4bbada48d79d82a9dff09e1734944270d8254513f355c4c2a3b2ca4e4dc156","downloaded_from":"2026-09-10T02:03:11.975Z","last_downloaded_at":"2026-09-10T02:03:11.975Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481435","source_sha256":"c7ca1a9acb3f3cede3c83c51b4e8c00a350ee025a84bda7c97ba344baf0e2c4a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f1432b33cc5c3fad8f6d99458487b872766f00e4237a2f4dd4823e0efe5ca341","downloaded_from":"2026-09-10T02:03:11.975Z","last_downloaded_at":"2026-09-10T02:03:11.975Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481435","source_sha256":"c7ca1a9acb3f3cede3c83c51b4e8c00a350ee025a84bda7c97ba344baf0e2c4a"}},{"block":null,"heading":"Financial Reporting When Entities Emerge from Chapter 11 Reorganization","paragraphs":[{"citation":"852-10-45-17","para":"45-17","html":"
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
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.
","snippet":"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 as of the confirmation date or as of a later da…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cdfe596a58851f4e7c802cd98bf4bbabc22a20237d15e5d5d4f5a3b586fc3ec8","downloaded_from":"2026-09-10T02:03:11.975Z","last_downloaded_at":"2026-09-10T02:03:11.975Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481435","source_sha256":"c7ca1a9acb3f3cede3c83c51b4e8c00a350ee025a84bda7c97ba344baf0e2c4a"}},{"citation":"852-10-45-18","para":"45-18","html":"
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.
","snippet":"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 u…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:477381f6160a046c234973e90c210ec1b38887c612cf0c92e31f833479c79a75","downloaded_from":"2026-09-10T02:03:11.975Z","last_downloaded_at":"2026-09-10T02:03:11.975Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481435","source_sha256":"c7ca1a9acb3f3cede3c83c51b4e8c00a350ee025a84bda7c97ba344baf0e2c4a"}},{"citation":"852-10-45-19","para":"45-19","html":"
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.
","snippet":"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 sh…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6982876c52515f62103111960df9c53f43f4b7c8280b515d8c608a52ae0a1f71","downloaded_from":"2026-09-10T02:03:11.975Z","last_downloaded_at":"2026-09-10T02:03:11.975Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481435","source_sha256":"c7ca1a9acb3f3cede3c83c51b4e8c00a350ee025a84bda7c97ba344baf0e2c4a"}},{"citation":"852-10-45-20","para":"45-20","html":"
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.
  2. b
    Subparagraph not used.
  3. c
    Deferred taxes shall be determined under the requirements of paragraph 852-740-45-1.
  4. d
    Subparagraph not used.
","snippet":"Entities that adopt fresh-start reporting in conformity with the preceding paragraph shall apply the following principles:\n(a) The reorganization value of the entity shall be assigned to the entity's assets and liabiliti…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:75cf663ccc6e4ef487214c7b672016625248ed0713cfdf772f95082539363cd0","downloaded_from":"2026-09-10T02:03:11.975Z","last_downloaded_at":"2026-09-10T02:03:11.975Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481435","source_sha256":"c7ca1a9acb3f3cede3c83c51b4e8c00a350ee025a84bda7c97ba344baf0e2c4a"}},{"citation":"852-10-45-21","para":"45-21","html":"
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 shall reflect all activity through that date in conformity with the guidance in paragraphs
852-10-45-1 through 45-16
. 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.
","snippet":"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 shall reflect all activity through that date in conformi…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:beeea83f1fd56389a099a3a43c9e5c9a43f46906682b060353067d3d07f7c32a","downloaded_from":"2026-09-10T02:03:11.975Z","last_downloaded_at":"2026-09-10T02:03:11.975Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481435","source_sha256":"c7ca1a9acb3f3cede3c83c51b4e8c00a350ee025a84bda7c97ba344baf0e2c4a"}},{"citation":"852-10-45-22","para":"45-22","html":"
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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.
","snippet":"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, compar…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d503d9f4c620c9c1df66d6a45db8e3214c071a7885e6dfaca28eca89c5d24d19","downloaded_from":"2026-09-10T02:03:11.975Z","last_downloaded_at":"2026-09-10T02:03:11.975Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481435","source_sha256":"c7ca1a9acb3f3cede3c83c51b4e8c00a350ee025a84bda7c97ba344baf0e2c4a"}},{"citation":"852-10-45-27","para":"45-27","html":"
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.
","snippet":"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 ent…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e79915791d32e791afe8ee0c39fe1b08d51787c07cbcfb288aeac7e8c08cdb18","downloaded_from":"2026-09-10T02:03:11.975Z","last_downloaded_at":"2026-09-10T02:03:11.975Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481435","source_sha256":"c7ca1a9acb3f3cede3c83c51b4e8c00a350ee025a84bda7c97ba344baf0e2c4a"}},{"citation":"852-10-45-28","para":"45-28","html":"
Example 2 (see paragraph 852-10-55-4) provides an illustration of fresh-start reporting and the related illustrative notes to financial statements.
","snippet":"Example 2 (see paragraph 852-10-55-4) provides an illustration of fresh-start reporting and the related illustrative notes to financial statements.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:291e510f79f24472480ae95a45af691d76ccad804900916e8d9cac6dd3ecff9d","downloaded_from":"2026-09-10T02:03:11.975Z","last_downloaded_at":"2026-09-10T02:03:11.975Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481435","source_sha256":"c7ca1a9acb3f3cede3c83c51b4e8c00a350ee025a84bda7c97ba344baf0e2c4a"}},{"citation":"852-10-45-29","para":"45-29","html":"
Entities emerging from Chapter 11 that do not meet the criteria in paragraph 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.
","snippet":"Entities emerging from Chapter 11 that do not meet the criteria in paragraph 852-10-45-19 do not qualify for fresh-start reporting. Liabilities compromised by confirmed plans shall be stated at present values of amounts …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ecde9fbcc516c1ae1f7c8d00a42021a968c4f76834a5ed273a3fa95759d86f44","downloaded_from":"2026-09-10T02:03:11.975Z","last_downloaded_at":"2026-09-10T02:03:11.975Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481435","source_sha256":"c7ca1a9acb3f3cede3c83c51b4e8c00a350ee025a84bda7c97ba344baf0e2c4a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:695ecdb842b48955570e4219a89484e4b9dccc858a71226478b871041b59ecc2","downloaded_from":"2026-09-10T02:03:11.975Z","last_downloaded_at":"2026-09-10T02:03:11.975Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481435","source_sha256":"c7ca1a9acb3f3cede3c83c51b4e8c00a350ee025a84bda7c97ba344baf0e2c4a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3667eaf103b768134c2fbf1017a743397252e1f4a0c2f1258fc77202d4cd3d80","downloaded_from":"2026-09-10T02:03:11.975Z","last_downloaded_at":"2026-09-10T02:03:11.975Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481435","source_sha256":"c7ca1a9acb3f3cede3c83c51b4e8c00a350ee025a84bda7c97ba344baf0e2c4a"}},{"number":"50","label":"50 Disclosure","anchor":"50-disclosure","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"852-10-50-1","para":"50-1","html":"
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).
","snippet":"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 acc…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:35985804b2d5f6772c17670e74accfab6d97e68af70e8601469c1a1994e1aecf","downloaded_from":"2026-09-10T02:03:15.208Z","last_downloaded_at":"2026-09-10T02:03:15.208Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481404","source_sha256":"dbc14399d2e013ef374da0b430aa4879672dc2da0bf336ef0b7e5e4227d11280"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f954405469d7366cf442ed31d56dd93e9e936be67f5f67190a5fbb9e0ea0a364","downloaded_from":"2026-09-10T02:03:15.208Z","last_downloaded_at":"2026-09-10T02:03:15.208Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481404","source_sha256":"dbc14399d2e013ef374da0b430aa4879672dc2da0bf336ef0b7e5e4227d11280"}},{"block":null,"heading":"Financial Reporting during Reorganization Proceedings","paragraphs":[{"citation":"852-10-50-2","para":"50-2","html":"
The notes to financial statements of an entity in Chapter 11 shall disclose both of the following:
  1. a
    Claims not subject to reasonable estimation based on the provisions of Subtopic 450-20
  2. b
    The principal categories of the claims subject to compromise.
","snippet":"The notes to financial statements of an entity in Chapter 11 shall disclose both of the following:\n(a) Claims not subject to reasonable estimation based on the provisions of Subtopic 450-20\n(b) The principal categories o…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:94604ad5a5638be77899df07c6face6bd176e2522cb5a453471f50ca4751399d","downloaded_from":"2026-09-10T02:03:15.208Z","last_downloaded_at":"2026-09-10T02:03:15.208Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481404","source_sha256":"dbc14399d2e013ef374da0b430aa4879672dc2da0bf336ef0b7e5e4227d11280"}},{"citation":"852-10-50-3","para":"50-3","html":"
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.
","snippet":"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.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:604d5440151671640f2daa70a6ae14d4ec4da1899e0c9d5a29d0e6c573974a00","downloaded_from":"2026-09-10T02:03:15.208Z","last_downloaded_at":"2026-09-10T02:03:15.208Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481404","source_sha256":"dbc14399d2e013ef374da0b430aa4879672dc2da0bf336ef0b7e5e4227d11280"}},{"citation":"852-10-50-4","para":"50-4","html":"
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.
","snippet":"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.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ab601e37ebd8bdc968e8c5f6beea886ff594923a1a8cf62a75e5ef68b73ed3d1","downloaded_from":"2026-09-10T02:03:15.208Z","last_downloaded_at":"2026-09-10T02:03:15.208Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481404","source_sha256":"dbc14399d2e013ef374da0b430aa4879672dc2da0bf336ef0b7e5e4227d11280"}},{"citation":"852-10-50-5","para":"50-5","html":"
Paragraph 852-10-45-16 identifies a situation in which disclosure of a probable issuance of common stock or common stock equivalents is required.
","snippet":"Paragraph 852-10-45-16 identifies a situation in which disclosure of a probable issuance of common stock or common stock equivalents is required.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:783a5e4cb061214bb297bf731d4522c57049d1f46a974c182f393899e6e9ff24","downloaded_from":"2026-09-10T02:03:15.208Z","last_downloaded_at":"2026-09-10T02:03:15.208Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481404","source_sha256":"dbc14399d2e013ef374da0b430aa4879672dc2da0bf336ef0b7e5e4227d11280"}},{"citation":"852-10-50-6","para":"50-6","html":"
Example 1 (see paragraph 852-10-55-2) provides an illustration of financial statements and notes thereto for an entity operating under Chapter 11.
","snippet":"Example 1 (see paragraph 852-10-55-2) provides an illustration of financial statements and notes thereto for an entity operating under Chapter 11.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:73354fdcd1611f2efdc5e6a6b71a9ed0ea2f7b04e544a36218596de3c6f36734","downloaded_from":"2026-09-10T02:03:15.208Z","last_downloaded_at":"2026-09-10T02:03:15.208Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481404","source_sha256":"dbc14399d2e013ef374da0b430aa4879672dc2da0bf336ef0b7e5e4227d11280"}},{"citation":"852-10-50-6A","para":"50-6A","html":"
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.)
","snippet":"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 f…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4b048d6f5bdf892169d5ccd957e8ccf42bbda9992bcebf4fbeb8a802d626d97b","downloaded_from":"2026-09-10T02:03:15.208Z","last_downloaded_at":"2026-09-10T02:03:15.208Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481404","source_sha256":"dbc14399d2e013ef374da0b430aa4879672dc2da0bf336ef0b7e5e4227d11280"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f49597fe35cbf7e3ced8eade2d5f4df2c9b433652dae636c9e0d70172c61a6e7","downloaded_from":"2026-09-10T02:03:15.208Z","last_downloaded_at":"2026-09-10T02:03:15.208Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481404","source_sha256":"dbc14399d2e013ef374da0b430aa4879672dc2da0bf336ef0b7e5e4227d11280"}},{"block":null,"heading":"Financial Reporting When Entities Emerge from Chapter 11 Reorganization and Adopt Fresh-Start Reporting","paragraphs":[{"citation":"852-10-50-7","para":"50-7","html":"
Paragraph 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, 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
    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.
","snippet":"Paragraph 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 th…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:90a4c7a67260e011b3f7e44f217516aee5bc811e627ab3f35b83e7604a1153d1","downloaded_from":"2026-09-10T02:03:15.208Z","last_downloaded_at":"2026-09-10T02:03:15.208Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481404","source_sha256":"dbc14399d2e013ef374da0b430aa4879672dc2da0bf336ef0b7e5e4227d11280"}},{"citation":"852-10-50-8","para":"50-8","html":"
Paragraph not used.
","snippet":"Paragraph not used.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:03314b1160ae6c629a7358019b88cdb7e66d440dc3b9ece10a75f810f8e800d7","downloaded_from":"2026-09-10T02:03:15.208Z","last_downloaded_at":"2026-09-10T02:03:15.208Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481404","source_sha256":"dbc14399d2e013ef374da0b430aa4879672dc2da0bf336ef0b7e5e4227d11280"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:28014acf0116cc4122387b9d60c14f67352355ea8a16126d932851be0820d74e","downloaded_from":"2026-09-10T02:03:15.208Z","last_downloaded_at":"2026-09-10T02:03:15.208Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481404","source_sha256":"dbc14399d2e013ef374da0b430aa4879672dc2da0bf336ef0b7e5e4227d11280"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fc66a2919fa9c3c32fd4304751d3b477a81785f3e11dbc55c305e1dd3bcc65b3","downloaded_from":"2026-09-10T02:03:15.208Z","last_downloaded_at":"2026-09-10T02:03:15.208Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481404","source_sha256":"dbc14399d2e013ef374da0b430aa4879672dc2da0bf336ef0b7e5e4227d11280"}},{"number":"55","label":"55 Implementation Guidance and Illustrations","anchor":"55-implementation-guidance-and-illustrations","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"852-10-55-1","para":"55-1","html":"
This Section is an integral part of the requirements of this Subtopic. This Section provides illustrations that address the application of requirements to specific aspects of accounting and reporting for entities in reorganization under Chapter 11 of the Bankruptcy Code. The illustrations that follow may be based on provisions of law that are subject to change. These assumptions about the law are for illustrative purposes only.
","snippet":"This Section is an integral part of the requirements of this Subtopic. This Section provides illustrations that address the application of requirements to specific aspects of accounting and reporting for entities in reor…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:740df714358240b92b41b9aad9695c86e36f377a24a610007c675184056d527e","downloaded_from":"2026-09-10T02:03:19.355Z","last_downloaded_at":"2026-09-10T02:03:19.355Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481372","source_sha256":"430a5e87d3ce72be870c288cdeab5a733982dd3ffeaa735a01cdafb8e12ce961"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3d4208964e91eee3fc10fc2e9ae63c39dc6c4c39983f32ed89057e08b1e26c42","downloaded_from":"2026-09-10T02:03:19.355Z","last_downloaded_at":"2026-09-10T02:03:19.355Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481372","source_sha256":"430a5e87d3ce72be870c288cdeab5a733982dd3ffeaa735a01cdafb8e12ce961"}},{"block":null,"heading":"Illustrations","paragraphs":[{"citation":"852-10-55-2","para":"55-2","html":"
The following Example illustrates the guidance in paragraphs
852-10-45-1 through 45-13
and
852-10-50-2 through 50-3
relating to financial statement reporting practices during the period that an entity is in reorganization. Illustrative financial statements and accompanying notes follow.
","snippet":"The following Example illustrates the guidance in paragraphs 852-10-45-1 through 45-13 and 852-10-50-2 through 50-3 relating to financial statement reporting practices during the period that an entity is in reorganizatio…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:528b4b1966e0ff9ff19e95768019f5c82d4374088e8ca2126589a2e4e5ed4679","downloaded_from":"2026-09-10T02:03:19.355Z","last_downloaded_at":"2026-09-10T02:03:19.355Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481372","source_sha256":"430a5e87d3ce72be870c288cdeab5a733982dd3ffeaa735a01cdafb8e12ce961"}},{"citation":"852-10-55-3","para":"55-3","html":"
XYZ Company is a manufacturing concern headquartered in Tennessee, with a fiscal year ending on December 31. On January 10, 19X1, XYZ filed a petition for relief under Chapter 11 of the federal bankruptcy laws. The following financial statements (balance sheet and statements of operations and cash flows) are presented as of and for the year ended December 31.
Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:
105-10-65-10XYZ Company is a manufacturing concern headquartered in Tennessee, with a fiscal year ending on December 31. On January 10, 19X1, XYZ filed a petition for relief under Chapter 11 of the federal bankruptcy laws. The following financial statements (balance sheet and statements of operations and cash flows) are presented as of and for the year ended December 31.
","snippet":"XYZ Company is a manufacturing concern headquartered in Tennessee, with a fiscal year ending on December 31. On January 10, 19X1, XYZ filed a petition for relief under Chapter 11 of the federal bankruptcy laws. The follo…","pending":true,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1f72297c5362ae4a0eb327be380c49e2bb41baccf51dc48b035665066a8d1d37","downloaded_from":"2026-09-10T02:03:19.355Z","last_downloaded_at":"2026-09-10T02:03:19.355Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481372","source_sha256":"430a5e87d3ce72be870c288cdeab5a733982dd3ffeaa735a01cdafb8e12ce961"}},{"citation":"852-10-55-4","para":"55-4","html":"
This Example illustrates the fresh-start-related guidance in paragraphs
852-10-45-19 through 45-27
and uses the same hypothetical XYZ Company as in Example 1 (see paragraph 852-10-55-2). Illustrative accounting and associated note disclosures follow.
","snippet":"This Example illustrates the fresh-start-related guidance in paragraphs 852-10-45-19 through 45-27 and uses the same hypothetical XYZ Company as in Example 1 (see paragraph 852-10-55-2). Illustrative accounting and assoc…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:33692b30462d6468de5a551f343d174ba2e3eb9ce8035545176fba07f0eb2833","downloaded_from":"2026-09-10T02:03:19.355Z","last_downloaded_at":"2026-09-10T02:03:19.355Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481372","source_sha256":"430a5e87d3ce72be870c288cdeab5a733982dd3ffeaa735a01cdafb8e12ce961"}},{"citation":"852-10-55-5","para":"55-5","html":"
The Bankruptcy Court confirmed XYZ's plan of reorganization as of June 30, 19X2. It was determined that XYZ's reorganization value computed immediately before June 30, 19X2, the date of plan confirmation, was $1,300,000, which consisted of the following.
","snippet":"The Bankruptcy Court confirmed XYZ's plan of reorganization as of June 30, 19X2. It was determined that XYZ's reorganization value computed immediately before June 30, 19X2, the date of plan confirmation, was $1,300,000,…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:51693b96eb963bc41bb3c24df1fb1d6bae8651b657159779b3762ba094c54dbc","downloaded_from":"2026-09-10T02:03:19.355Z","last_downloaded_at":"2026-09-10T02:03:19.355Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481372","source_sha256":"430a5e87d3ce72be870c288cdeab5a733982dd3ffeaa735a01cdafb8e12ce961"}},{"citation":"852-10-55-6","para":"55-6","html":"
XYZ Company adopted fresh-start reporting because holders of existing voting shares immediately before filing and confirmation of the plan received less than 50% of the voting shares of the emerging entity and its reorganization value is less than its postpetition liabilities and allowed claims, as shown in the following table.
","snippet":"XYZ Company adopted fresh-start reporting because holders of existing voting shares immediately before filing and confirmation of the plan received less than 50% of the voting shares of the emerging entity and its reorga…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:89089ce1bd822bbe7efe5e2a04abab60e63b612e11d0f0d7d29cfe06cdfb66a6","downloaded_from":"2026-09-10T02:03:19.355Z","last_downloaded_at":"2026-09-10T02:03:19.355Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481372","source_sha256":"430a5e87d3ce72be870c288cdeab5a733982dd3ffeaa735a01cdafb8e12ce961"}},{"citation":"852-10-55-7","para":"55-7","html":"
The reorganization value of the XYZ Company was determined in consideration of several factors and by reliance on various valuation methods, including discounting cash flow and price/earnings and other applicable ratios. The factors considered by XYZ Company included all of the following:
  1. a
    Forecasted operating and cash flow results that gave effect to the estimated impact of both of the following:
    1. 1
      Corporate restructuring and other operating program changes
    2. 2
      Limitations on the use of available net operating loss carryovers and other tax attributes resulting from the plan of reorganization and other events.
  2. b
    The discounted residual value at the end of the forecast period based on the capitalized cash flows for the last year of that period
  3. c
    Market share and position
  4. d
    Competition and general economic considerations
  5. e
    Projected sales growth
  6. f
    Potential profitability
  7. g
    Seasonality and working capital requirements.
","snippet":"The reorganization value of the XYZ Company was determined in consideration of several factors and by reliance on various valuation methods, including discounting cash flow and price/earnings and other applicable ratios.…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2736f9a6b9858bb5eec3a34ceaa73bfc357bb31e161b319bf8b197773e13d389","downloaded_from":"2026-09-10T02:03:19.355Z","last_downloaded_at":"2026-09-10T02:03:19.355Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481372","source_sha256":"430a5e87d3ce72be870c288cdeab5a733982dd3ffeaa735a01cdafb8e12ce961"}},{"citation":"852-10-55-8","para":"55-8","html":"
After consideration of XYZ Company's debt capacity and other capital structure considerations, such as industry norms, projected earnings to fixed charges, earnings before interest and taxes to interest, free cash flow to interest, and free cash flow to debt service and other applicable ratios, and after extensive negotiations among parties in interest, it was agreed that XYZ's reorganization capital structure should be as follows.
","snippet":"After consideration of XYZ Company's debt capacity and other capital structure considerations, such as industry norms, projected earnings to fixed charges, earnings before interest and taxes to interest, free cash flow t…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a63039fe5cbaab9c6c266de88069eba904901de988d04296d547f0b831e34776","downloaded_from":"2026-09-10T02:03:19.355Z","last_downloaded_at":"2026-09-10T02:03:19.355Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481372","source_sha256":"430a5e87d3ce72be870c288cdeab5a733982dd3ffeaa735a01cdafb8e12ce961"}},{"citation":"852-10-55-9","para":"55-9","html":"
The following entries record the provisions of the plan and the adoption of fresh-start reporting.
Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:
105-10-65-10The following entries record the provisions of the plan and the adoption of fresh-start reporting.
","snippet":"The following entries record the provisions of the plan and the adoption of fresh-start reporting.\nTransition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:105-10-65-10The following entries record …","pending":true,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0a84831a6f11729a290cb88bf4d79c57bce17a6cb71158149b1bccb82fec278c","downloaded_from":"2026-09-10T02:03:19.355Z","last_downloaded_at":"2026-09-10T02:03:19.355Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481372","source_sha256":"430a5e87d3ce72be870c288cdeab5a733982dd3ffeaa735a01cdafb8e12ce961"}},{"citation":"852-10-55-10","para":"55-10","html":"
The effect of the plan of reorganization on XYZ Company's balance sheet, as of June 30, 19X2, is as follows.
Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:
105-10-65-10The effect of the plan of reorganization on XYZ Company's balance sheet, as of June 30, 19X2, is as follows.
","snippet":"The effect of the plan of reorganization on XYZ Company's balance sheet, as of June 30, 19X2, is as follows.\nTransition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:105-10-65-10The effect of the p…","pending":true,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1e835513329fb51a3a6a674b9302c271ad3aaca975c693e680a944fb7a80ad2b","downloaded_from":"2026-09-10T02:03:19.355Z","last_downloaded_at":"2026-09-10T02:03:19.355Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481372","source_sha256":"430a5e87d3ce72be870c288cdeab5a733982dd3ffeaa735a01cdafb8e12ce961"}},{"citation":"852-10-55-11","para":"55-11","html":"
The following illustrative disclosure discusses the details of XYZ Company's confirmed plan of reorganization. In this illustration a tabular presentation entitled Plan of Reorganization Recovery Analysis is incorporated in the note disclosure. The plan of reorganization recovery analysis may alternatively be presented as supplementary information to the financial statements.
Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:
105-10-65-10The following illustrative disclosure discusses the details of XYZ Company's confirmed plan of reorganization. In this illustration a tabular presentation entitled Plan of Reorganization Recovery Analysis is incorporated in the note disclosure. The plan of reorganization recovery analysis may alternatively be presented as supplementary information to the financial statements.
","snippet":"The following illustrative disclosure discusses the details of XYZ Company's confirmed plan of reorganization. In this illustration a tabular presentation entitled Plan of Reorganization Recovery Analysis is incorporated…","pending":true,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:28fd471363fa89757d6f045fcf97f7e59cade8007d13cc626812b6288cd6925d","downloaded_from":"2026-09-10T02:03:19.355Z","last_downloaded_at":"2026-09-10T02:03:19.355Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481372","source_sha256":"430a5e87d3ce72be870c288cdeab5a733982dd3ffeaa735a01cdafb8e12ce961"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:45768a001a8096777c8b6fd9f9d20bca3a577cd5e939506a9df93af5f8be134f","downloaded_from":"2026-09-10T02:03:19.355Z","last_downloaded_at":"2026-09-10T02:03:19.355Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481372","source_sha256":"430a5e87d3ce72be870c288cdeab5a733982dd3ffeaa735a01cdafb8e12ce961"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9e749e4676c3957e657fcb5a7f2c21cfc32a8e2eda7519b916fab60e70d409b8","downloaded_from":"2026-09-10T02:03:19.355Z","last_downloaded_at":"2026-09-10T02:03:19.355Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481372","source_sha256":"430a5e87d3ce72be870c288cdeab5a733982dd3ffeaa735a01cdafb8e12ce961"}},{"number":"60","label":"60 Relationships","anchor":"60-relationships","is_sec":false,"groups":[{"block":null,"heading":"Financial Services—Depository and Lending","paragraphs":[{"citation":"852-10-60-1","para":"60-1","html":"
For the required financial statement reporting of a liquidating bank, see Subtopic 205-30.
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During the case, GAAP continues to apply but the statements must separate reorganization-related transactions from ongoing operations: prepetition liabilities subject to compromise are segregated on the balance sheet at expected allowed amounts, and reorganization items are shown separately in the income statement and cash flow statement. On emergence, an entity adopts fresh-start reporting only if reorganization value is less than postpetition liabilities plus allowed claims and pre-confirmation voting shareholders receive less than 50% of the emerging entity's voting shares.","key_points":["Entering Chapter 11 does not change the GAAP an entity applies, but financial statements for periods including and after the filing must distinguish transactions and events directly associated with the reorganization from ongoing operations (852-10-45-1 through 45-2).","The balance sheet must separate prepetition liabilities subject to compromise from those not subject to compromise and from postpetition liabilities; liabilities that may be affected by the plan are reported at expected allowed amounts under Subtopic 450-20, and doubtful secured claims stay in the subject-to-compromise category (852-10-45-4 through 45-5).","Revenues, expenses (including professional fees), realized gains and losses, and loss provisions resulting from the reorganization are reported separately as reorganization items; professional fees are expensed as incurred, not deferred or accrued at filing (852-10-45-9 through 45-10).","Interest expense is reported only to the extent it will be paid or is probable to be an allowed priority, secured, or unsecured claim and is not a reorganization item, while interest income earned only because of the proceeding is a reorganization item; the difference between reported and contractual interest must be disclosed (852-10-45-11, 45-12, 852-10-50-3).","Reorganization items are presented separately within operating, investing, and financing categories of the statement of cash flows (direct method preferred); if the indirect method is used, related operating receipts and payments go in a supplementary schedule or the notes (852-10-45-13, 852-10-50-6A).","Fresh-start reporting is required upon emergence only if reorganization value of the assets immediately before confirmation is less than total postpetition liabilities and allowed claims and pre-confirmation voting shareholders receive less than 50% of the emerging entity's voting shares, with the loss of control substantive and not temporary (852-10-45-19).","Under fresh-start reporting the reorganization value is assigned to assets and liabilities using Subtopic 805-20 procedures with any residual reported as goodwill, the new entity starts with no retained earnings or deficit, debt forgiveness is reported as extinguishment under Subtopic 220-20, and comparative statements straddling the confirmation date are prohibited (852-10-45-20, 45-21, 45-26)."],"categories":["Financial statement presentation","Disclosure","Debt and equity","Cash flows"],"audience_level":"advanced","student_note":"Exam questions almost always hinge on the two-part fresh-start test in 852-10-45-19 (reorganization value < postpetition liabilities plus allowed claims AND old shareholders get <50% of new voting shares) — both must be met, and failing them means the emerging entity merely restates compromised liabilities at present value instead of resetting its balance sheet. A common misunderstanding is treating interest expense as a reorganization item; it is not, and interest is only recorded to the extent it will be paid or is probably an allowed claim.","related_topics":["852-20","852-740","805-20","450-20","220-20","205-30"],"key_concepts":["liabilities subject to compromise","reorganization items","fresh-start reporting","reorganization value","allowed claims","plan of reorganization confirmation","debtor-in-possession","forgiveness of debt"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2469393c614b9e63d632591ef44854b75884b131f637b6848a78d16066ea5af3","downloaded_from":"2026-09-10T02:02:52.609Z","last_downloaded_at":"2026-09-10T02:03:24.197Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval 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