11.5 Presentation and Disclosure
11.5.1 Current Versus Noncurrent Classification
ASC 470-60
45-1 All or a portion of the
carrying amount of the payable at the time of the
restructuring may need to be reclassified in the balance
sheet because of changes in the terms, for example, a
change in the amount of the payable due within one year
after the date of the debtor’s balance sheet.
45-2 A troubled debt
restructuring of a short-term obligation after the date
of a debtor’s balance sheet but before that balance
sheet is issued or is available to be issued (as
discussed in Section 855-10-25) may affect the
classification of that obligation in accordance with
Subtopic 470-10.
Like a credit-related covenant violation that takes place after
the balance sheet date, a TDR that occurs after the balance sheet date may
affect the classification of the related debt as current or noncurrent (see
Section 13.5).
11.5.2 Disclosure
ASC 470-60
50-1 A debtor shall
disclose, either in the body of the financial statements
or in the accompanying notes, all of the following
information about troubled debt restructurings that have
occurred during a period for which financial statements
are presented:
- For each restructuring, a description of the principal changes in terms, the major features of settlement, or both; separate restructurings within a fiscal period for the same category of payables (for example, accounts payable or subordinated debentures) may be grouped for disclosure purposes
- Aggregate gain on restructuring of payables
- Aggregate net gain or loss on transfers of assets recognized during the period (see paragraphs 470-60-35-3 and 470-60-35-8)
- Per-share amount of the aggregate gain on restructuring of payables.
50-2 A debtor shall disclose
in financial statements for periods after a troubled
debt restructuring the extent to which amounts
contingently payable are included in the carrying amount
of restructured payables pursuant to the provisions of
paragraph 470-60-35-7. If required by paragraphs
450-20-50-1 through 50-6 and 450-20-50-9 through 50-10,
a debtor shall also disclose in those financial
statements total amounts that are contingently payable
on restructured payables and the conditions under which
those amounts would become payable or would be
forgiven.
ASC 470-60-50-1 and 50-2 specify the disclosure requirements for a TDR that has
occurred during a financial reporting period. Such disclosures are required even
if the debt is no longer outstanding.