Page 14 - Bankruptcy Volume 1
P. 14
Postconfirmation Trusts .............................................................................................................................. 118
Liquidating Trusts ....................................................................................................................................... 119
Litigation Trusts .......................................................................................................................................... 120
Chapter 16 — Financial Reporting on Emergence from Chapter 11 .......................................................... 121
Scope and Timing ........................................................................................................................................... 121
Requirements for Fresh-Start Reporting ......................................................................................................... 121
Debt Exceeds Reorganization Value .......................................................................................................... 122
Change in Control ....................................................................................................................................... 122
Disclosure Statement Presentation .................................................................................................................. 124
Allocation of Reorganization Value ............................................................................................................... 124
Asset Values................................................................................................................................................ 124
Liability Values ........................................................................................................................................... 124
Deferred Taxes ............................................................................................................................................ 125
Equity Accounts .......................................................................................................................................... 125
Pushdown Accounting ................................................................................................................................ 125
Disclosure Requirements ................................................................................................................................ 125
Combined Presentation of Debtor and Reorganized Entity Financial Statements ......................................... 126
Preconfirmation Contingencies ....................................................................................................................... 126
Example of Implementing Fresh-Start Reporting ........................................................................................... 127
Entry One .................................................................................................................................................... 129
Entry Two ................................................................................................................................................... 130
Entry Three ................................................................................................................................................. 130
Reporting by Debtors Not Qualifying for Fresh-Start .................................................................................... 132
Chapter 17 — Income Tax Awareness Issues ............................................................................................... 133
The Impact of Bankruptcy Filing on Tax Compliance ................................................................................... 133
Tax Attributes in Bankruptcy ...................................................................................................................... 133
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