Debt restructuring accounting remains top of mind for borrowers as companies refinance debt that may have been issued in a very different interest rate environment. This episode discusses the accounting models for debt restructurings, including lender-by-lender assessments, modification versus extinguishment outcomes, troubled debt restructurings, fee allocations, and syndicated debt transactions. We break down the key considerations and share insights on navigating common challenges in applying ASC 470 guidance.

For further guidance on the accounting for this topic, see chapter 3 of PwC’s Financing transactions guide. For cash flow presentation, see section 6.8 and for debt presentation and disclosure, see chapter 12 of PwC’s Financial statement presentation guide. 

This episode is part of our debt-related miniseries. Stay tuned for our final episode next week, and in case you missed them, listen to our previous episodes:

• Beyond debt: Accounting for other liability-classified arrangements
• Current or noncurrent? Getting debt classification right

Follow this podcast on your favorite podcast app and subscribe to our weekly newsletter to stay in the loop.  

About our guests 

Suzanne Stephani is a director in PwC’s National Office specializing in the statement of cash flows as well as the application and interpretation of the accounting guidance related to financing, leasing, and foreign currency transactions. 

Christopher Gerdau is a partner in PwC’s National Office specializing in accounting for financial instruments and banking-related topics. Chris also conducts technical reviews of SEC filings and provides technical support to PwC’s practice offices. Chris’s client service expertise includes the banking, capital markets, and insurance industries. 

About our guest host 

Diana Stoltzfus is a partner in PwC’s National Office who helps to shape PwC’s perspectives on regulatory matters, responses to rulemakings and policy development, and implementation related to significant new rules and regulations. Prior to rejoining PwC, Diana was the Deputy Chief Accountant in the Office of the Chief Accountant (OCA) at the SEC where she led the activities of the OCA’s Professional Practices Group. 

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to [email protected]

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.