There are two sources of professional assistance in negotiating a credit change: if the unaccounted cash flows required by the restructured debt are greater than the net book value of the initial debt prior to the restructuring, then no profit or loss is recorded and there is no adjustment in the book value of the debt. A new effective interest rate is based on the book value of the initial debt and revised cash flows. When the unsettled future cash flows required for restructured debt are less than the net book value of the initial debt prior to the restructuring, the debtor reports a profit equal to the book value of the debt through future cash payments. Subsequently, all cash receipts and payments made under the restructured debt contract, whether interest or face value, reduce the book value of the debt and no interest expense is recorded. A credit change may include a reduced interest rate, longer repayment period, another type of loan or any combination of these loans. Companies must follow CSA 470-50, modifications and extinguishment work. According to CSA 470-50, changes and exchanges that are not considered TDRs are counted as erasure (1) (if conditions differ significantly) or (2) as a change. If the present value of cash flows under the terms of the new debt instrument differs by at least 10% of the present value of the remaining cash flows under the terms of the original instrument (commonly referred to as “10% cash flow”). Below is a summary of the differences in accounting treatment between a deletion transaction and a change: The two inter-institutional statements focus on accounting for the lender (the financial institution that grants the loan), which is processed in ASC 310-40, Receivables – Troubled Debt Restructurings by Creditors. However, none of the interamage statements contain any guidance on accounting treatment from the point of view of a debtor (real estate borrower). As a result, the real estate borrower should continue to follow asc 470-60, Troubled Debt Restructurings by Debtors, despite the TDR accounting relief granted to lenders under the CARES Act.