Extinguish

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Extinguish

Retire or pay off debt.

Extinguish

To cause a security to cease to exist. This especially applies to debt securities; for example, when a bond matures, it is said to be extinguished. See also: Repay.
References in periodicals archive ?
FASB freely admitted that the criteria used to define extraordinary items in APB Opinion 30 would seldom apply to debt extinguishments.
First, Marcos Massoud, Cecily Raiborn, and Joseph Humphrey found that the number of early debt extinguishments reported as extraordinary items dropped from 40 in 2002, the last year when all debt extinguishments were required to be reported as extraordinary items, to just four in 2003 ("Extraordinary Items: Time to Eliminate the Classification," CPA Journal, February 2007, http://bit.
The statement is effective for transfers and servicing of financial assets and extinguishments of liabilities occurring after December 31, 1996," said Bullen.
To be classified as extraordinary, the transaction must be both unusual in nature and infrequent in occurrence, given the entity's environment (ASC 225-20); however, debt extinguishments rarely meet both conditions and are usually reported as a component of income from continuing operations.
for cash) is treated no differently from other debt extinguishments, and any gain or loss is to be recognized in the period of the transaction (ASC 470-50-40-4).
4, 44, and 64, which stated that extinguishments of debt were typically normal and recurring events for business entities, and, as such, the gains and losses from such extinguishments should not be considered extraordinary unless they meet the "unusual in nature" and "infrequent in occurrence" criteria as provided in APB Opinion 30.
76, Extinguishment of Debt, clearly states losses on early extinguishments have to be recognized in the period of extinguishment, not in the period before the extinguishment.