Wiley GAAP: Financial Statement Disclosure Manual

60ASC 852 REORGANIZATIONS

1. Authoritative Literature
   1. Subtopics
   2. Scope and Scope Exceptions
   3. Corporate Bankruptcy and Reorganizations
      1. Entities Operating Under and Emerging from Protection of the Bankruptcy Laws
      2. Quasi Reorganizations
2. Presentation and Disclosure Requirements
   1. Presentation
   2. Disclosure
3. Presentation and Disclosure Examples
   1. Example 60.1: Voluntary Filing Under
   2. Example 60.2: Note 1—Application of Fresh‐Start Accounting
   3. Example 60.3: Note 2—Emergence from Voluntary Reorganization Under Chapter 11 Proceedings
   4. Example 60.4: Note 3—Fresh‐Start Accounting
   5. Example 60.5: Reorganization Value
   6. Example 60.6: Consolidated Balance Sheet—Effect of Applying Fresh‐Start Accounting
   7. Example 60.7: Separation Adjustments
   8. Example 60.8: Reorganization Adjustments
   9. Example 60.9: Fresh‐Start Adjustments
   10. Example 60.10: Reorganization Items, Net
   11. Example 60.11: Accounting Policy—Quasi Reorganization
   12. Example 60.12: Quasi Reorganization Not Completed, Correction of Error
   13. Example 60.13: Presentation of Stockholders’ Equity in Quasi Reorganization

AUTHORITATIVE LITERATURE

Entities expected to reorganize as going concerns under Chapter 11 of the Bankruptcy Code employ so‐called fresh‐start accounting if:

1. The “reorganization value of the assets of the emerging entity immediately before the date of confirmation is less than the total of all postpetition liabilities and allowed claims, and
2. Holders of existing voting shares immediately before confirmation receive less than 50% of the voting shares ...