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Loan Payable, Debt Restructuring

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Darlyn Antoinette
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18 views1 page

Loan Payable, Debt Restructuring

Uploaded by

Darlyn Antoinette
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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LOANS payable 1m (10%)

INiTiAL MEASM’T
FAiR VALUE LESS
TRANSACTiON
SUBSEQUENT
AMORTiZATiON
Jdksgdasx,sbj
Company X BPI COSTS
Credit evaluation
ORiGiNATiON COST Appraisal fee
Promissory note/
credit agreement Processing fee
INTERPOLATiON Effect: Higher
1. Cash 1. Loans receivable effective rate
Loans Payable Cash
LiNEAR x - lower rate
2. Interest expense 2. Cash
iNTERPOLATiON higher rate - lower rate
Cash Interest income

Debt restructuring
Accs Receivable Loans Payable (Book value)
Inventory Non-cash asset (Book value)
ASSET SWAP Non-cash asset Investments
Gain on extinguishment
DACiON Foreclosure PPE
EN PAGO of security
HiERARCHY
Creditor to Loans Payable (BV)
EQUiTY SWAP Issuance of shares shareholder Loss on extinguishment 1. FV of sh (equity)
Share Capital (par) VS 2. FV of liability
MODiFiCATiON OF TERMS Share Premium 3. BV of liability

Reduction of interest rate OLD NEW (IFRS 9)


Forgiveness of Gain or loss is at least Extinguished
accrued interest SUBSTANTiAL Same
MOTiFiCATiON 10% of the old liability Derecognize
Extension of maturity the old liability
NOT SUBSTANTiAL Gain or loss is less than Extinguished
10% of the old liability Not extinguished
Derecognize
New effective rate the old liability

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