With the increasing competition of market, sometimes the enterprise may have some temporary or severe financial difficulties due to various factors. It may lead cash flow problems, so it is difficult to liquidate debt. In this case, as a creditor, one way is through debt restructuring, creditors to make certain concessions to reduce the burden on the debtor to weather the storm. Debt restructuring plays an important role in resolving the debt risk, adjusting the property rights structure and optimizing the capital structure. Therefore, the development and implementation of accounting standard for debt restructuring is extremely urgent. Base on this situation, June 1998, the Ministry of Finance formally promulgated the "Accounting Standards for Enterprises -Debt Restructuring". But there were still some problems in the specific implementation. In January 2001, a revised debt restructuring standard was issued. February 15, 2006 the Ministry of Finance re-issued new accounting standards, including "Accounting Standards for Enterprises No. 12 -Debt Restructuring" which revised based on old standard. This paper analyze the "Accounting Standards for Enterprises No. 12 -Debt Restructuring"(2006) through comparison with the debt restructuring standards of 1998 and 2001, and find the problems in current standards, then make recommendations in order to improve further recognition and measurement of debt restructuring.
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