Accounting After Bankruptcy – Understanding ASC 852 and Fresh-Start Reporting​

Course Overview:

This course covers the accounting and financial reporting requirements that apply when a company files for Chapter 11 bankruptcy and applies ASC 852. It explains when this guidance is used and how it changes the accounting for liabilities, expenses, and professional fees during the bankruptcy process. You'll learn how to identify and report liabilities subject to compromise, how to present reorganization-related items in the financial statements, and what disclosures are expected. The course also briefly discusses quasi-reorganizations.


Learning Objectives:

 Upon completion of this course, you will be able to:

• Identify when an entity is required to apply ASC 852 accounting guidance for reorganization
• Recognize how to present liabilities subject to compromise and reorganization items
• Differentiate between normal operating expenses and reorganization-related costs
• Determine the appropriate financial statement presentation during and after Chapter 11 proceedings
• Recognize required disclosures for entities undergoing reorganization under ASC 852