Debt

Roadmap
Issuer’s Accounting for Debt (March 2025; Updated September 2025)

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This Roadmap discusses an entity’s accounting for and presentation and disclosure of (1) debt obligations, such as bonds, loans, notes, and other payables, including convertible debt, and (2) commitments to obtain debt financing in the future, such as delayed-draw loan commitments, lines of credit, and revolving-debt arrangements. It also addresses the accounting for costs and fees associated with debt issuance as well as those incurred to secure a commitment to obtain debt financing in the future.

Topics addressed in the Roadmap include embedded derivatives (ASC 815-15), debt extinguishments (ASC 470-50), debt modifications and exchanges (ASC 470-50), debt conversions (ASC 470-20), and balance sheet classification (ASC 470-10).

The September 2025 update includes an example illustrating the accounting in situations in which an entity transfers cash that it intends to be sufficient to satisfy a debt obligation but the creditor has not actually been paid nor has the entity been legally released from being the primary obligor. These types of transfers are commonly referred to as “satisfaction and discharge” procedures.

Also available is the latest edition of On the Radar, a high-level summary of emerging issues and trends related to the accounting and financial reporting topics addressed in the Roadmap.

Be sure to check out other titles in Deloitte’s Roadmap series, our comprehensive, easy-to-understand collection of accounting guides on selected topics of broad interest to the financial reporting community.

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