With respect to evaluating whether the creditor has granted a concession, ASC 310-40-15-13 defines a concession, stating that a creditor has granted a concession when "as a result of the restructuring, it does not expect to collect all amounts due, including interest accrued at the original contract rate." With the exception of the expectation criterion, this guidance aligns with the guidance used for determining if a loan is impaired. If the payment of principal is dependent on the value of collateral, the creditor should take into consideration the current value of the collateral in determining the amount of principal to be collected. Therefore, when restructuring occurs, the creditor will need to consider all factors that changed to determine if a concession was granted, including the change in the fair value of the underlying collateral that may be used to repay the loan. Whether the creditor expects to collect all amounts due should be considered first in determining if a concession has been granted.

ASC 310-40-15-14 provides guidance for evaluating situations where additional collateral or a guarantee are received as consideration when a restructuring takes place. The creditor should consider whether the nature and amount of additional collateral or guarantee is sufficient to compensate it for the change in terms associated with the restructuring. The guidance specifies that the creditor should determine if a guarantor has the ability and willingness to pay.

ASC 310-40-15-15 through 15-16 further states that a creditor should determine if the interest rate provided to the debtor under the restructuring, whether permanent or temporary, is reflective of a market rate to which the debtor would otherwise have access. In other words, the creditor needs to evaluate if the debtor would be able to get the same terms and market rate from a different lender. If the debtor would be unable to do so, the rate would be considered below market and a concession may have been granted. In that case, all aspects of the restructuring would need to be considered in determining whether a concession has been granted.

ASC 310-40-15-17 addresses whether a restructuring results in a delay in payment that is insignificant. A delay in payment of amounts due is not considered a concession if the delay is determined to be insignificant. The guidance provides that a delay may be insignificant depending on the following factors: