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Hi,
Please confirm the following:
For debtor: you DO NOT recognize either gain or loss on debt restructuring if entire payment of debt isn’t effected.
For creditor: you DO NOT recognize any gain whatsoever, you only recognize loss. So, if you get undercounted future cash flows in excess of original debt, you recognize that as interest NOT gain.
So, basically, gain is recognized for the debtor only not the creditor.
Right?
Thanks,
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