When a creditor's receivable becomes impaired due to a troubled debt restructuring, the receivable is remeasured based on the discounted present value of currently expected cash flows at the loan's original effective rate.

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When a creditor's receivable becomes impaired due to a troubled debt restructuring, the receivable is remeasured based on the discounted present value of currently expected cash flows at the loan's original effective rate. This is in accordance with generally accepted accounting principles (GAAP).

When a Creditor's Receivable Becomes Impaired Due to a Troubled