TDR

Question 1

TDR - Settlement

Answer 1

Gain on debt - CV of debt
FV of asset exchange
G/L on asset exchange
FV of asset exchange vs CV of asset

Question 2

Modification of Terms

Answer 2

Type 1
Sum of future cash flows< CV of debt
Debtor record gain
Creditor record loss
Type 2
Sum of future cash flow > CV of debt
Debtor 1) No gain is recorded
2) Record interest at modfied rate