Deloitte
Accounting Research Tool
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Chapter 3 — Contract Analysis

3.2 Identifying and Evaluating Contractual Terms

3.2 Identifying and Evaluating Contractual Terms

When determining the appropriate accounting for a debt transaction, an entity should carefully review the underlying legal documents and consider all relevant facts and circumstances. It also needs to consider the numerous rules and exceptions that exist under GAAP and that might apply to the transaction. Sometimes seemingly simple debt transactions raise complex accounting issues.