Debt restructuring refers to a transaction in which a new agreement is reached on the time, amount or way of paying off debts through an agreement between creditors and debtors or a court ruling without changing the counterparty. In other words, as long as the original debt repayment conditions are modified, that is, the debt repayment conditions determined during debt restructuring are different from the original agreement, it is regarded as debt restructuring.
The debtor shall recognize the difference between the book value of the restructured debt and the cash paid as debt restructuring income and include it as non-operating income in the current profit and loss. Among them, the relevant restructuring debts are derecognized when the conditions for derecognizing financial liabilities are met.
The creditor shall recognize the difference between the book balance of the restructured creditor's rights and the cash received as debt restructuring loss, and take it as non-operating expenditure and count it into the current profit and loss. Among them, the related restructured creditor's rights are derecognized when the conditions for derecognizing financial assets are met.
If the impairment provision has been made for the restructured creditor's rights, the difference will be written off first, and if there are still losses after the write-off, it will be included in the non-operating expenses (debt restructuring losses); If there is still a balance after the write-off of the impairment reserve, it shall be reversed to offset the current asset impairment loss.
The debtor shall recognize the difference between the book value of the restructured debt and the fair value of the transferred non-cash assets as debt restructuring income and include it as non-operating income in the current profit and loss. Among them, the relevant restructuring debts are derecognized when the conditions for derecognizing financial liabilities are met. The difference between the fair value and the book value of the transferred non-cash assets shall be regarded as the profit and loss of the transferred assets and included in the current profit and loss.