FASB Staff Proposes GAAP Taxonomy Improvements Related to Proposed ASU on Accounting for Debt Exchanges

The FASB staff has released proposed GAAP taxonomy improvements related to the Board’s proposed Accounting Standards Update (ASU) Debt — Modifications and Extinguishments (Subtopic 470-50) and Liabilities — Extinguishments of Liabilities (Subtopic 405-20): Accounting for Debt Exchanges. The proposed ASU would clarify that the debtor should account for certain debt exchange transactions as a debt extinguishment.

Comments on the proposed GAAP taxonomy improvements are due by May 30, 2025.