{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/852/20/#05-overview-and-background","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"852","topic_title":"Reorganizations","subtopic":"852-20","subtopic_title":"Quasi-Reorganizations","section":{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"852-20-05-1","para":"05-1","html":"
This Subtopic addresses the accounting applicable to a corporate readjustment procedure in which, without the creation of a new corporate entity and without the intervention of formal court proceedings, an entity restates its balance sheet to fair value. This corporate readjustment procedure may eliminate an accumulated deficit and/or prevent future charges to its income statement that otherwise would be made. The accounting permitted through such a procedure is an exception to the general rule discussed in paragraph 852-20-25-2.
","snippet":"This Subtopic addresses the accounting applicable to a corporate readjustment procedure in which, without the creation of a new corporate entity and without the intervention of formal court proceedings, an entity restate…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b5f0c66945c529ef543743e96baf48d03373cdf01ed288de1228e44cdf852cb6","downloaded_from":"2026-09-10T02:03:26.455Z","last_downloaded_at":"2026-09-10T02:03:26.455Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481280","source_sha256":"8d9f0060e4527b6c53bd71a2c3321554d4b4eb08cbdf53eed7b0045a4f440bf3"}},{"citation":"852-20-05-2","para":"05-2","html":"
Readjustments of this kind fall in the category of what are called quasi-reorganizations. This Subtopic does not deal with the general question of quasi-reorganizations, but only with cases in which the exception permitted in paragraph 852-20-25-2 is availed of by a corporation. Such cases are referred to as readjustments. The accounting and reporting issues that arise and are addressed in this Subtopic consist of what is permitted in a readjustment and what is permitted thereafter.
","snippet":"Readjustments of this kind fall in the category of what are called quasi-reorganizations. This Subtopic does not deal with the general question of quasi-reorganizations, but only with cases in which the exception permitt…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e31b30252c61202353a20c7aac398ef8bb4cbd53ce914a6583979e180259acc6","downloaded_from":"2026-09-10T02:03:26.455Z","last_downloaded_at":"2026-09-10T02:03:26.455Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481280","source_sha256":"8d9f0060e4527b6c53bd71a2c3321554d4b4eb08cbdf53eed7b0045a4f440bf3"}},{"citation":"852-20-05-3","para":"05-3","html":"
This Subtopic does not address quasi-reorganizations involving only deficit reclassifications.
","snippet":"This Subtopic does not address quasi-reorganizations involving only deficit reclassifications.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:38a4466bdf7f6d8be3e88725fe5a4ea8744d1454649259d3e4106ec90b4da695","downloaded_from":"2026-09-10T02:03:26.455Z","last_downloaded_at":"2026-09-10T02:03:26.455Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481280","source_sha256":"8d9f0060e4527b6c53bd71a2c3321554d4b4eb08cbdf53eed7b0045a4f440bf3"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ba701a3e644a5b290e2210baa4f3e18da23ff6a035414727064c9ae6b7e50578","downloaded_from":"2026-09-10T02:03:26.455Z","last_downloaded_at":"2026-09-10T02:03:26.455Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481280","source_sha256":"8d9f0060e4527b6c53bd71a2c3321554d4b4eb08cbdf53eed7b0045a4f440bf3"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:536245e11c009ab9879344f7fbcc6bee8a9729dc080041b6dd20de50c70f4990","downloaded_from":"2026-09-10T02:03:26.455Z","last_downloaded_at":"2026-09-10T02:03:26.455Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481280","source_sha256":"8d9f0060e4527b6c53bd71a2c3321554d4b4eb08cbdf53eed7b0045a4f440bf3"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:536245e11c009ab9879344f7fbcc6bee8a9729dc080041b6dd20de50c70f4990","downloaded_from":"2026-09-10T02:03:26.455Z","last_downloaded_at":"2026-09-10T02:03:26.455Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481280","source_sha256":"8d9f0060e4527b6c53bd71a2c3321554d4b4eb08cbdf53eed7b0045a4f440bf3"}}