ASC 470 Debt Modification vs Extinguishment 10% Test Calculator
Tests whether restructured debt terms constitute a debt extinguishment or modification under the 10% cash flow test.
Notice: engineering verification utility. Use test or de-identified data and verify results independently before relying on them.
How it works
Standard: ASC 470-50 Debt Modifications and Extinguishments
Formula: PV of New Cash Flows vs PV of Remaining Old Cash Flows discounted at original effective interest rate (10% threshold)
Checks: Valid cash flow streams and discount rates
Calculated locally in browser memory; nothing leaves your browser.
Deterministic local-first client-side execution. Provided as-is without warranty.