Debt restructuring, also known as debt restructuring, refers to the matter that creditors make concessions according to the agreement or ruling reached with the debtor when the debtor has financial difficulties. There are several ways of debt restructuring: 1. Debtors who pay debts with assets usually use cash, inventory, financial assets, fixed assets and intangible assets to pay debts. Paying off debts in cash usually means paying off debts in cash below the book value of debts. If the same amount of debt is paid off in cash, it does not belong to debt restructuring. 2. Debt-to-equity swap If the debtor converts the convertible corporate bonds payable into capital according to the share swap agreement, they are generally debt capital and cannot be treated as debt restructuring. 3. Modify other debt conditions, reduce debt principal, lower interest rate, and exempt unpaid interest payable. 4. The combination of the above three ways adopts the above three ways and the debt restructuring form of paying off debts. (1) part of the debt is paid off with assets, and the other part is converted into capital; (2) part of the debt is paid off by assets, and the other part is modified by other debt conditions; (3) Part of the debt is converted into capital, and the other part is modified into other debt terms; (4) part of the debt is paid off by assets, part of it is converted into capital, and the other part is modified by other debt terms.
2. What are the key factors to modify other debt terms?
Modifying other debt conditions refers to debt restructuring in other ways than cash, non-cash assets and debt to capital. Where the creditor agrees to extend the debtor's debt repayment period, it agrees to extend the debt repayment period and pay interest, and it agrees to extend the debt repayment period and reduce the debt principal or interest.
(1) Where other debt terms are modified, the debtor shall take the fair value of the debt after the modification of other debt terms as the recorded value of the restructured debt. The difference between the book value of the restructured debt and the recorded value of the restructured debt is included in the current profit and loss (non-operating income).
If the revised debt clauses involve contingent payable amount, and the contingent payable amount meets the recognition conditions of estimated liabilities, the debtor shall recognize the contingent payable amount as estimated liabilities. For example, the debt restructuring agreement stipulates that if the debtor's performance improves to a certain extent or meets certain requirements (such as turning losses into profits and getting rid of financial difficulties). ) within a certain period of time after debt restructuring, he has to pay a certain amount of extra money to creditors. When the contingent payable amount undertaken by the debtor meets the recognition conditions of estimated liabilities, it shall be recognized as estimated liabilities. The difference between the book value of the restructured debt and the sum of the recorded value of the restructured debt and the estimated debt amount is included in the current profit and loss (non-operating income).
Contingent payable amount refers to the payable amount that needs to occur according to the occurrence of some future event, and the occurrence of this future event is uncertain. If the contingent payables do not occur in the subsequent accounting period, the enterprise shall write off the confirmed estimated liabilities and confirm the non-operating income at the same time.
(2) Where other debt conditions change, the creditor shall take the fair value of the creditor's rights after the change of other debt conditions as the book value of the restructured creditor's rights, and the difference between the book balance of the restructured creditor's rights and the book value of the restructured creditor's rights shall be treated in accordance with the provisions on debt restructuring accounting treatment for paying off debts in cash.
Where contingent receivables are involved in the revised debt terms, creditors should not recognize contingent receivables, nor should they be included in the book value of the restructured creditor's rights.
Contingent receivable amount refers to the receivable amount that needs to occur according to the occurrence of some future event, and the occurrence of this future event is uncertain.
3. What are the ways and conditions of debt restructuring?
The ways of debt restructuring mainly include:
1. Debt-for-assets refers to the debt restructuring method in which the debtor transfers its assets to the creditor to pay off the debt. The assets used by the debtor to pay off debts include cash assets and non-cash assets, mainly including cash, inventory and various investments (including stock investment, bond investment, fund investment, warrant investment, etc.). ), fixed assets and intangible assets.
2. Debt-to-equity swap refers to a debt restructuring method in which debtors convert debts into capital and creditors convert creditor's rights into equity. Debt-to-equity swap is debt-to-equity swap for a joint stock limited company and paid-in capital for other enterprises. Therefore, the debtor increased its share capital (or paid-in capital) and the creditor increased its long-term equity investment. The debtor's conversion of convertible corporate bonds payable into capital according to the conversion agreement is a normal conversion and cannot be treated as debt restructuring.
Iii. Modifying other debt conditions refers to the debt restructuring method of modifying other debt conditions, such as reducing debt principal and reducing debt interest.
Four, the combination of the above three ways refers to the use of the above three ways to pay off the debt restructuring.
The prerequisite for debt restructuring is:
In the definition of debt restructuring, the precondition of "when the debtor has financial difficulties" is added, and it is pointed out that debt restructuring is "a matter that creditors make concessions according to the agreement or ruling reached with the debtor". It highlights the premise of the debtor's financial difficulties and the commercial nature of the creditor's final concession. In other words, the new standards require enterprises to meet the premise that debtors have financial difficulties when restructuring their debts.
Whether an enterprise can restructure its debts depends on the analysis of the debtor's financial situation. This can be judged by analyzing and comparing the short-term solvency, asset quality, profit quality and growth characteristics of enterprises. Obviously, the new standard restricts enterprises to manipulate profits by debt restructuring to a certain extent, which actually narrows the scope of application of debt restructuring.
Four, the enterprise to modify other debt conditions (contingent conditions) for debt restructuring, the factors that affect the amount payable in the future are (). A. book value of debt B. contingent expenditure C. ...
Correct answer: ABDE
Analysis: Modifying other debt conditions of debt restructuring, mainly modifying the debt repayment period and interest rate.