Assume the Town of Olson is undergoing a bankruptcy, and a bankruptcy plan of adjustment, restructuring the towns debt, has been confirmed by a court. Locate the appropriate accounting guidance, then respond to the following questions.

When (i.e., at what date) is it appropriate for the town to recognize gains from adjustments to its prebankruptcy debt? Cite your source.

Locate the summary of the original standard for this issue, and describe the objective of this standard.