3 7 Debt extinguishment accounting
Debt may also be guaranteed by a third party, such as an owner or a corporate parent. To correctly measure what a company owes, multiple factors must be considered. Some loans have special clauses or covenants that must be factored into the measurement. Interest may be charged in addition to the principal amount owed, or if no actual interest rate is stated, interest could be implied. EY is a global leader in assurance, consulting, strategy and transactions, and tax services. ...