ASC 470-60

ASC 470-60 pertains to accounting for debt extinguishments, specifically when a company pays off or retires debt before its scheduled maturity. It provides guidance on recognizing gains or losses from such early extinguishments. If the company pays less than what's owed, it records a gain; if it pays more, it records a loss. This standard ensures that financial statements accurately reflect the economic effects of debt repayments, helping stakeholders understand changes in a company's liabilities and financial health related to debt management.