Three years later, FASB issued SFAS 4, which required that debt extinguishment
gains and losses be reported as extraordinary items to ensure that their nature was clearly described to users.
subordination requirement, and the extinguishment
requirements is not
(14) This extinguishment
provision is designed both to 1) prevent taxpayers from reaping a windfall if the property is destroyed or condemned and they get the proceeds from insurance or condemnation; and 2) to ensure that the charity can use its proportionate share of the proceeds to advance the cause of preservation elsewhere.
Debt Lookup and the Account Extinguishment
Report benefits banks, creditors, debt collectors and consumers with account clarity.
After further including 2013's $43.1 million debt extinguishment
charge, pretax income for the 52 weeks climbed 204% to $79.8 million,
the loss from extinguishment
of debt, EPS would have been $0.29 for Q4.
In circumstances outside of troubled debt restructuring, the relevant accounting guidance (FASB ASC Section 470-5040, Debt Modifications and Extinguishments
) states that "extinguishment
transactions between related entities may be in essence capital transactions." Therefore, the preparer must determine which extinguishment
transactions should be recognized as capital transactions and which should result in the recognition of a gain or loss.
Earnings in the quarter include a loss on extinguishment
However, highway bosses have concluded that pursuing an extinguishment
order, needed to close the crossing, would be very unlikely to succeed and are recommending councillors refuse the request when they meet tomorrow.
The company said the decline in net income was primarily driven by the recording of a loss on the extinguishment
of debt in the amount of USD7.1m in conjunction with the April 2011 debt refinancing and USD2.5m of fees related to Wesco's initial public offering.
That compares to a profit of $178 million, or 37 cents per share, in the first quarter of 2009, when Tenet recorded a $134 million gain from the early extinguishment