A	B	C	D
1		Ways of settling a non-convertible financial liability [FL]:
2		Payment of cash or cash equivalent. Exchange a non-cash asset (NCA). Exchange equity ["debt/equity swop"]. Settled using cash proceeds from the issuance of a new financial liability. "Substantial" FL exchange [swop/restructure/refinancing] with an existing creditor in the same currency. "Not substantial" FL exchange [swop/restructure/refinancing] with an existing creditor in the same currency, when applying IFRS. "Not substantial" FL exchange [swop/restructure/refinancing] with an existing creditor in the same currency, when applying ASPE**. Legal defeasance.
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4		Accounting treatment:
5		A: Record on the balance sheet the revaluation increase/decrease of the NCA.
6		B: Recognize gain/loss on the NCA's revaluation in the income statement.
7		C: Remove from the balance sheet the carrying value* of the financial liability (i.e., derecognize the financial liability).
8		D: Remove from the balance sheet the revalued NCA (i.e., derecognize the NCA).
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10		* Carrying value = book value = face value less/plus unamortized discount/premium, assuming the financial liability is measured using the amortized cost model.
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12		© Brian Conheady
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