Wiley GAAP 2013: Interpretation and Application of Generally Accepted Accounting Principles

CHAPTER 20

LONG-TERM LIABILITIES

Perspective and Issues

Definitions of Terms

Concepts, Rules, and Examples

Notes and Bonds

Notes issued solely for cash

Notes issued for cash and a right or privilege

Noncash transactions

Accounting by participating mortgage loan borrowers

Redeemable instruments

Sales of future revenue

Effective Interest Method

Extinguishment of Debt

Debtor’s accounting for a modification or exchange of debt instruments other than in a troubled debt restructuring

Gain or loss on debt extinguishment

Troubled Debt Restructurings

Is the debtor experiencing financial difficulty?

Has the creditor granted a concession?

Debtors

Substituted debtors in a troubled debt restructuring

ASC 310-10-35 creditors

Convertible Debt

Accrued interest upon conversion of convertible debt

Convertible bonds with a “premium put”

Debt convertible into the stock of a consolidated subsidiary

Accounting for a convertible instrument granted or issued to a nonemployee

Convertible bonds with issuer option to settle for cash upon conversion

Own-share lending arrangements related to a convertible debt issuance

Convertible Securities with Beneficial or Contingent Conversion Features

Beneficial conversion

Contingent conversion

Contingent conversion rights triggered by issuer call

Modifications to conversion privileges

Tax effect of accounting for beneficial conversion feature

Disclosure of contingently convertible securities

Induced Conversion of Debt

Determining applicability of ASC 470-20

Debt Issued ...