履行不能負債再編成의 會計處理에 관한 硏究 : 債務者를 중심으로 = (A) study on accounting for troubled-debt restructuring

다국어 초록 (Multilingual Abstract)

I. INTRODUCTION
Restructuring of troubled-debt which is related to granting a concession to a debtor due to the debtor's significant financial difficulties stems from an agreement between the creditor and debtor. Alternatively, it may imposed by law or by a court. It raises the following accounting issues :
(1) How should the carrying amount of the restructured debt be valued at the time of restructuring?
(2) How should future cash payments as either interest or principal amount be designated in future periods?
(3) How should the gain on restructuring of debt be taxed and how interest expense should be recognized for tax purposes at the time of restructuring and in future periods?
Present accounting practice dealing with the above issues does not necessarily reflect their economic substance. Consequently, it significantly misleads the debtor's financial position and the results of its operations.
The primary purpose of this study is to suggest a reasonable basis of accounting for the troubled-debt restructuring in order that the accounting treatment reflects the economic substance of the accounting event more adequately .
II. NATURE OF DEBT-RESTRUCTURING
Debt restructuring in the form of a modification of terms includes not only a reduction of face amount of the debt but also changes in payment terms or interest rate. Debt restructuring, in essence, aggregately constitutes a concession to the debtor to facilitate the repayment of the troubled-debt and to enhance the continuation and rehabilitation of the debtor.
With respect to the nature of the debt restructuring, four different views have been suggested in current literature. They are :
(1) Repayment of the creditor's investment at face amount,
(2) Repayment of the creditor's investment at total future cash flow,
(3) Reduction and continuation of existing debt, and
(4) Reduction but refinancing by new debt.
III. ACCOUNTING MODELS FOR DEBT RESTRUCTURING
This author has developed and presents in this study four alternative accounting models based on each of the above four different views. Specifically,
· The first accounting model, which is presently followed in Korea, is based on the view that the nature of debt restructuring is to repay the creditor's investment at face amount. This model is labelled in this study as the "Face Amount Model".
· The second accounting model, which is currently followed in the United States, is based on the view that the nature of debt restructuring is to repay the creditor's investment based on total future cash flow. This model is labelled in this study as the "Total Future Cash Flow Model".
· The third accounting model is based on the view that existing debt is reduced by debt restructuring but its effective interest rate remains the same as before. This model is labelled in this study as the "Unchanged Interest Rate Model".
· The fourth accounting model is based on the view that existing debt is reduced by debt restructuring and at the same time it is refinanced by new debt. This model is labelled in this study as the "Fair Value Model"
Under the Face Amount Model, the amount of gain on debt restructuring is recognized only to the extent that the face amount (principal debt and interest accrued at the time of restructuring) of the original debt is reduced. Interest expense for the future periods is reported in the period when it is actually due. Furthermore, the amount of interest expense is calculate by applying the new rate specified in the debt restructuring.
Under the Total Future Cash Flow Model, a gain on debt restructuring is recognized only when the face amount of the original debt is higher than total future cash flow. No future cash payments made in future periods are designated as either interest or face amounts, except that a portion of the future cash payments which exceeds the face amount of the original debt is amortized over future periods as interest expense using the interest method.
Under the Unchanged Interest Rate Model, restructured debt is valued at total future cash flow discounted by the original rate of interest. The excess of the face amount of the original debt over the above discounted value is recognized as a gain on debt restructuring at the time of restructuring. Using the original rate of interest, future cash payments are segregated between face amount and interest expense.
Under the Fair Value Model, the accounting treatment is essentially the same as in the Unchanged Interest Rate Model except that the interest rate to be used is not the original rate of interest but is a market interest rate prevailed at the time of debt restructuring.
IV. SIMULATION OF ACCOUNTING MODELS THROUGH CASE STUDY
Three cases have been developed to simulate the four accounting models as presented. The simulations compare how the financial position and results of operations would result in each of the four accounting models as at the time of debt restructuring, and at the end of and for each fiscal year for future periods.
Furthermore, in order to demonstrate the accounting consequences in the debtor's ability to improve their financial position for future periods, net cash flows related to the tax effect that arise from application of each of the four accounting models have been analyzed.
V. ASSESSMENT OF EACH OF THE ACCOUNTING MODELS
Based on the simulations performed in Chapter 4, each of the four accounting models are evaluated on the grounds of (1) fair presentation of financial positions and results of operations of the debtor and (2) degree of achieving the objectives of debt restructuring. The objectives of debt restructuring are principally evaluated by the extent of how utilization of tax incentives could be maximized and how profits available for cash dividends could be minimized. An extensive analysis of net cash f1ow arising from the tax effect on interest expenses, which do not require outlays of cash for each of the specific fiscal years, has been conducted in order to assess the utilization of tax incentives.
VI. SUMMARY OF MAJOR PROBLEMS ENCOUNTERED IN PRESENT ACCOUNTING PRACTICES AND SUGGESTIONS TO IMPROVE THEM
This study discusses the following issues :
(1) Specific rules as to the accounting for troubled debt restructurings do not exist presently in Korea. Therefore, a separate pronouncement on accounting standards for troubled-debt restructurings should be provided by the authoritative accounting body.
(2) Valuation of restructured troubled-debt by debtors does not reflect the economic substance of the liability. It is the writer's opinion that the restructured troubled-debt should be valued at present value of total future cash payments in accordance with generally accepted accounting standards applicable to valuing monetary long-term liabilities.
(3) Since the time value of money is not accounted for, financial position and results of operations for each of the fiscal years during the maturity periods of the restructured debt are misstated. Therefore, interest implicit in the restructured debt should be properly accounted for as periodic expenses over the maturity of the debt using the interest method.
(4) Tax incentives provided to troubled-debt restructurings should be structured toward the above improvement in accounting standards.
VII. CONCLUSION
The major conclusions of this study are summarized below :
(1) Restructuring of troubled-debt should be valued at the fair value of the loan at the time of restructuring. The difference between the carrying amount of the original debt and this fair value should be credited to shareholders' equity.
(2) Future cash payments should be accounted for as interest expense and the repayment of the face amount of the restructured debt using on the interest method.
Implications of and suggested solutions thereof in application of the above accounting method are as follows :
(1) A specific guideline on how to determine the proper market interest rate should be provided.
(2) Tax laws should be revised to provide the debtor with tax incentives not only on the reduction of the face amount of the debt but also on all of the other concessions such as changes in payment terms or interest rate.
The results of the above study are also applicable to the accounting for troubled-loan restructurings by creditors. Specifically ;
(1) Restructured troubled-loans should be valued at fair value of the loan at the time of restructuring. This value would be determined by discounting total cash receipts based on the revised terms of the loan using the market interest rate prevailing at the time of the restructuring. The difference between the carrying amount of the original loan and the above fair value should be charged to bad-debt expense or allowance for doubtful accounts.
(2) Future cash receipts should be accounted for as interest income and the repayment of the face amount of the restructured loan using the interest method.
The implications of and solutions thereof in application of the above accounting method are the same as those for the debtors, as mentioned above.
This study recommends that an additional study using an other research approach, such as an empirical study, be conducted in the future. However, this type of study requires that sufficient accounting data on debt restructurings be accumulated in order to substantiate empirically the conclusions of the study. Further, an extentive study on disclosure requirements, transitional measures and other related matters is also needed.

목차 (Table of Contents)

• 目次
• 第1章 序論
• 第1節 問題의 提起와 硏究의 目的 = 1
• 第2節 硏究의 方法 및 範圍 = 5
• 第2章 負債再編成의 理論的 考察
• 第1節 負債再編成槪念의 理解 = 12
• 1. 負債의 本質 및 評價原則 = 12
• 2. 負債再編成의 類型 및 手段 = 16
• 3. 負債再編成의 制度的 特性 = 19
• 第2節 負債再編成의 性格에 관한 諸 觀点 = 28
• 1. 負債額面金額의 變更 觀点 = 29
• 2. 未來의 總現金受領額에 의한 投資額의 回收觀点 = 32
• 3. 再編成前 有效利子率에 의한 現價로의 負債減少觀點 = 34
• 4. 公正價値로의 負債減少觀点 = 37
• 第3章 負債再編成에 관한 會計處理 模型의 設定
• 第1節 額面金額模型 = 40
• 第2節 總現金흐름模型 = 43
• 第3節 再編成前有效利子率模型 = 49
• 第4節 公正價値模型 = 53
• 第4章 事例를 통한 시뮤레이션 分析
• 第1節 事例의 構成 = 59
• 1. 事例構成原則 = 59
• 2. 事例의 內容 = 60
• 第2節 負債再編成時点의 財務狀態 및 債務免除利益 分析 = 66
• 1. 負債再編成直後의 財務狀態 = 66
• 2. 債務免除利益 = 80
• 第3節 再編成負債 持續期間의 經營成果와 財務狀態 分析 = 82
• 1. 經營成果의 分析 = 82
• 2. 財務狀態의 分析 = 92
• 第4節 法人稅 效果로 인한 現金 흐름의 差異 分析 = 94
• 1. 負債再編成과 관련된 法人稅 問題 = 94
• 2. 法人稅 效果와 現金흐름 = 95
• 3. 再編成時点의 法人稅效果 = 97
• 4. 再編成負債持續期間의 法人稅效果 = 100
• 第5章 會計處理 諸模型의 評價
• 第1節 經營成果와 財務狀態에 대한 適正報告 = 113
• 1. 經營成果의 測定 = 113
• 2. 財務狀態의 報告 = 118
• 第2節 負債再編成 目的에의 貢獻度 = 120
• 1. 租稅政策과 法人稅效果 = 121
• 2. 配當에 의한 社外流出 = 124
• 第6章 履行不能負債再編成의 會計處理上의 問題點과 改善方向
• 第1節 問題点 = 128
• 1. 會計處理基準의 不備 = 128
• 2. 負債再編成企業의 財務情報의 歪曲表示 = 129
• 3. 負債再編成企業의 財務構造 건실화에 역행 = 131
• 第2節 改善方向 = 132
• 1. 會計處理基準의 制定 = 133
• 2. 負債評價方法의 改善 = 134
• 3. 債務免除利益의 範圍擴大 = 134
• 4. 支給利子費用의 認識方法 改善 = 135
• 5. 稅制上의 改善策 = 136
• 第7章 結論 = 138
• 參考文獻 = 143
• 英文抄錄 = 151