1. Characteristics of debt restructuring Article 2 of these Standards stipulates that debt restructuring refers to matters in which the creditor makes concessions in accordance with the agreement reached with the debtor or the court's ruling when the debtor encounters financial difficulties.

The debtor's financial difficulty means that the debtor is unable or unable to repay the debt according to the original conditions due to difficulties in capital turnover, operating difficulties or other reasons.

A creditor's concession means that the creditor agrees that the debtor experiencing financial difficulties will repay the debt now or in the future at an amount or value lower than the book value of the reorganized debt.

The circumstances in which the creditor makes concessions mainly include: the creditor exempts or exempts part of the debt principal or interest of the debtor, lowers the interest rate on the debt payable by the debtor, etc.

2. Measurement of the fair value of non-cash assets used to repay debts. If non-cash assets are used to repay debts in debt restructuring, the fair value of non-cash assets shall be measured in accordance with the following provisions: (1) The non-cash assets belong to stocks held by the enterprise,

For financial assets such as bonds and funds, their fair value shall be determined in accordance with the provisions of "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments".

(2) If non-cash assets are inventories, fixed assets, intangible assets and other assets and there is an active market, their fair value shall be determined based on their market prices; if there is no active market but there is an active market for similar assets, their fair value shall be determined based on their market prices.

The fair value of a non-cash asset shall be determined based on the market price of similar assets; if the fair value of a non-cash asset cannot be determined using the above two methods, reasonable methods such as valuation techniques shall be used to determine its fair value.

3. Accounting treatment of debt restructuring (1) Treatment of the debtor The debtor shall adjust the balance between the book value of the restructured debt and the fair value of the cash used to repay the debt, the fair value of non-cash assets, the fair value of the shares transferred, or the book value of the debt after reorganization.

The difference, when the conditions for derecognition of financial liabilities stipulated in "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments" are met, it will be derecognized and included in non-operating income (debt restructuring gains).

The difference between the fair value and the book value of non-cash assets should be treated in different situations: If the non-cash assets are inventories, they should be treated as sales and recognized at their fair value in accordance with the provisions of "Accounting Standards for Business Enterprises No. 14 - Revenue"

revenue, while carrying forward corresponding costs.

If non-cash assets are fixed assets or intangible assets, the difference between their fair value and book value shall be included in non-operating income or non-operating expenses.

If the non-cash assets are long-term equity investments, the difference between their fair value and book value shall be included in investment gains and losses.

(2) Disposal of creditors Creditors shall calculate the difference between the book balance of the reorganized claims and the fair value of the assets transferred, the fair value of the shares transferred, or the book value of the claims after the reorganization, and calculate the difference between the book balance of the reorganized claims and the fair value of the transferred assets, or the book value of the claims after the reorganization.

When the conditions for derecognition of financial assets stipulated in "Recognition and Measurement of Financial Instruments" are met, they will be derecognized and included in non-operating expenses (debt restructuring losses), etc.

If impairment provisions have been made for the restructured creditor's rights, the above-mentioned difference shall first be offset against the provision for impairment. If there is still a loss after the offset, it shall be included in non-operating expenses (losses from debt restructuring); the impairment provision after offset shall be

If there is still a balance, it should be reversed and offset against the current asset impairment losses.

When creditors receive non-cash assets such as inventories, fixed assets, intangible assets, and long-term equity investments, they shall be recorded at their fair value.

4. Modification of other debt conditions involves a contingent payable amount. According to Article 7 of these Standards, modification of other debt conditions involves a contingent payable amount involved in debt restructuring, and the contingent amount payable complies with Accounting Standards for Business Enterprises No. 13 - or

If there are any conditions for the recognition of estimated liabilities in "Events", the debtor shall recognize the contingent amount payable as estimated liabilities.

For example, the debt restructuring agreement stipulates that within a certain period after the debt restructuring, if the debtor's performance improves to a certain extent or meets certain requirements (such as turning losses into profits, getting out of financial difficulties, etc.), the debtor should pay a certain amount of additional money to the creditors. When the debtor bears the

When the contingent amount payable meets the conditions for recognition of estimated liabilities, the contingent amount payable shall be recognized as estimated liabilities.

If the above-mentioned contingent payable amount does not occur in the subsequent accounting period, the enterprise shall write off the recognized estimated liabilities and recognize non-operating income at the same time.