Accounts Receivable – Negotiated Debt Forgiveness Policy

This sample policy outlines procedures to protect a company’s receivables and ensure the fair market value of such assets is properly recorded. It applies to all units of a company.

The primary objective of this policy is to adequately protect a company’s receivable investment and any and all distributions in lieu of payment (such as stock, debentures, notes and warrants) related to formal or informal creditor agreements (both in and outside of bankruptcy proceedings) for which there may or may not be a ready market. In addition, this policy was issued to ensure consistent application of accounting policies throughout a company in accordance with generally accepted accounting principles.