Troubled Debt Restructuring Modification of Terms

[@2516westbrownstreet]

Once again, you have explained a legendary complex subject in such a way that is understandable and conceptually enlightening. The Farhat lectures are truly outstanding!! Thank you.

[@AccountingLectures]

You're very welcome. Please check my website for more resources: farhatlectures.com/

[@Chavez94565]

I believe that you need to use the post-restructuring effective interest rate for the creditor

[@harshitgirdhar5737]

Sir, thanks so much for your lectures, your channel has helped me clear the BEC exam. Just a feedback - in some of your videos the voice is a bit low, its manageable though but sometimes its a little challenging. Thanks so much for teaching us the concepts in a simpler way :)

[@rajashrimahabalesh4867]

Hello, is there an easier way to calculate the debtor's new interest expense? Because we aren't provided with financial calculators and the calculation is way too lengthy. Thank you sir. And also sir, if the time period is more than 3 it wouldnt be possible to calculate the interest expense % so pls help

[@stunnerkay9556]

This is on point

[@AccountingLectures]

Thank you. Here's my intermediate Accounting course: farhatlectures.pathwright.com/library/?category=Intermediate+Accounting

[@chaldean3941]

How did you punch in the discount on new payment based on old rate. The values do not work on my calculator. They do not result in 576,439. This is what I punch in: N-3, I/Y-12, PV=170,827, PMT-0, FV-240,000

[@weiwu1929]

I think that might just be a typo. I got the same amount as you had. But the total pv of the new loan also the amortization talk with are the same as what Farhat illustrated.

[@claire1388]

I maybe know why you got this number because I made a same mistake. we use the Present Value of 1 dollar table rather than the present value of annuity table. hope that make senses.

[@weiwu1929]

Great illustration!! Never would’ve known how to do those amortization tables if I don’t watched your lecture. Thank you so much!

[@AccountingLectures]

Glad it was helpful! Take a tall my courses: farhatlectures.pathwright.com/

[@Ancin47]

Can you address CECL next?

[@AccountingLectures]

Here’s cecl: kzbin.info/www/bejne/kKunnqVoacxrfck

[@Ancin47]

@@AccountingLectures thank you!

[@KarenJoyce-ur5gn]

Weird that the debtor uses undiscounted cash flow, but creditor has to discount. Also weird that one side (debtor) could have no gain or loss but the other side (creditor) has a loss. Sigh.