COR2033. Accounting for Debt Modifications

In these turbulent times tenants across the globe may struggle to pay rent, thereby putting pressure on real estate investors to repay their debt. Modifications and restructurings of real estate company’s debt have become an unfortunate common theme.

Learning objectives

• Understand the overall US GAAP accounting framework to apply to debt modifications
• Understand how to evaluate and differentiate between an extinguishment of debt and a continuation of existing debt
• Understand the accounting implications for both extinguishments and continuation of modified debt