@v587d/capital-generation 2.7.6 → 2.7.8

package/selected-skills/financeskills/skills/crypto-accounting/references/fasb-crypto.md

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+# FASB Crypto Accounting: ASU 2023-08 (ASC 350-60)
+
+## Scope Test (all six required)
+1. Meets the definition of an intangible asset;
+2. Holder has no enforceable claims on underlying goods/services/other assets (excludes most stablecoins and wrapped/asset-backed tokens);
+3. Created/resides on a distributed ledger;
+4. Secured by cryptography;
+5. Fungible (excludes NFTs);
+6. Not created by the reporting entity or its related parties (excludes self-issued tokens).
+
+## Measurement
+**Fair value through net income, every reporting period** (ASC 820). This replaced the old cost-less-impairment model — both gains AND losses now flow through P&L. Effective fiscal years beginning after 15 Dec 2024; early adoption was permitted.
+
+## Presentation & Disclosure
+- Balance sheet: crypto assets presented SEPARATELY from other intangibles.
+- Income statement: remeasurement gains/losses presented separately from impairments of other intangibles.
+- Disclosures: per significant holding — name, cost basis, fair value, units; rollforward (additions, dispositions, gains, losses); restrictions; method for cost basis (FIFO/specific ID).
+
+## Out-of-Scope Items (still messy)
+- **Stablecoins**: fail criterion 2 → financial asset analysis; often amortized cost if redeemable 1:1.
+- **NFTs**: remain under legacy intangible model (cost less impairment) — non-fungible.
+- **Self-issued tokens**: no recognized asset for the issuer; proceeds analysis → liability/revenue/equity question under contract terms.
+- **Staking rewards**: recognize when control obtained, at fair value — revenue vs. other income classification judgment.
+
+## IFRS Contrast
+No crypto-specific standard: IAS 38 (cost or revaluation-through-OCI if active market) or IAS 2 at FV-less-costs-to-sell for broker-traders. The US GAAP FV-through-P&L answer is currently the cleaner model — see ifrs-crypto.md.

package/selected-skills/financeskills/skills/crypto-accounting/references/ifrs-crypto.md

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+# IFRS Accounting for Digital Assets
+
+Guidance on how to apply International Financial Reporting Standards to cryptocurrencies and other digital assets.
+
+## 🏛️ Classification Logic
+
+### 1. Intangible Assets (IAS 38)
+The standard treatment for cryptocurrencies like Bitcoin.
+- **Criteria**: Identifiable non-monetary asset without physical substance.
+- **Measurement**: Cost model or Revaluation model (if an active market exists).
+
+### 2. Inventory (IAS 2)
+Applicable if the entity holds the assets for sale in the ordinary course of business (e.g., broker-dealers).
+- **Measurement**: Lower of cost and net realizable value (NRV).
+
+---
+
+## 🔍 Key Challenges
+- **Impairment**: Determining if a price drop is "prolonged" or "material."
+- **Custody**: Verifying that the entity has control over the private keys.
+- **Valuation**: Selecting a representative exchange price (Level 1 input).
+
+## 🔗 Sources
+- [IFRS Interpretations Committee: Holdings of Cryptocurrencies](https://www.ifrs.org/projects/completed-projects/2019/holdings-of-cryptocurrencies/)
+- [PwC: Crypto-assets: IFRS reporting](https://www.pwc.com/gx/en/audit-assurance/publications/ifrs-reporting-crypto-assets.html)

package/selected-skills/financeskills/skills/cvp-breakeven/EXAMPLE.md

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+# Worked Example - cvp-breakeven
+
+## Ask
+
+> Price 1,200, variable cost 780, fixed costs 8,400,000/year. How many units to break even, and how many for 2,100,000 after-tax profit at 30% tax?
+
+## What a correct response contains
+
+Contribution 420/unit. Breakeven 20,000 units (24,000,000 revenue). After-tax target needs pre-tax 3,000,000 -> (8,400,000+3,000,000)/420 = 27,143 units.
+
+## File-driven variant
+
+With fixture(s) `evals/files/product_economics.csv`:
+
+> From the attached unit economics (evals/files/product_economics.csv): compute breakeven units and sales, units needed for the target profit, margin of safety at current volume, and degree of operating leverage.
+
+Expected: Breakeven 6,000 units ($300,000); target requires 8,000 units; MOS 25%; DOL 4.0.
+
+## Compute, don't estimate
+
+All figures above come from [`scripts/calculate.py`](./scripts/calculate.py) - import its functions rather than doing arithmetic in prose.

package/selected-skills/financeskills/skills/cvp-breakeven/SKILL.md

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+---
+name: cvp-breakeven
+description: When the user wants cost-volume-profit analysis, breakeven points, or operating leverage assessment. Also use when the user mentions "breakeven," "contribution margin," "margin of safety," "operating leverage," "how many units to be profitable," "target profit volume," or "should we accept this order below full cost."
+metadata:
+  version: 1.0.0
+---
+
+# Cost-Volume-Profit & Breakeven Analysis
+
+You are a Management Accountant. Your goal is to expose how profit responds to volume, price, and cost structure — and to use that to answer real decisions: pricing floors, special orders, capacity steps, and risk.
+
+## Initial Assessment
+
+1. **Cost Structure Split**
+   - Separate fixed from variable honestly (regression/high-low on history beats labels — "salaries" often contains variable overtime; "logistics" contains fixed contracts).
+   - Identify STEP costs (supervision, warehouse space, license tiers) and their breakpoints.
+
+2. **Decision Context**
+   - Single product, multi-product mix, special order, or capacity decision — each uses different math.
+
+---
+
+## CVP Framework
+
+### Core Formulas
+- `Contribution per unit = Price − Variable cost per unit`
+- `CM ratio = Contribution / Price`
+- `Breakeven units = Fixed costs / contribution per unit`
+- `Breakeven revenue = Fixed costs / CM ratio`
+- `Target profit volume = (Fixed + target profit) / contribution per unit` (pre-tax; for after-tax: target/(1−t))
+- `Margin of safety % = (Actual − breakeven revenue)/Actual`
+- `Operating leverage = Contribution / Operating income` — at DOL 4, a 10% volume drop cuts profit 40%.
+
+### Multi-Product Mix
+Weighted-average contribution at the CONSTANT MIX assumption: `BE units = Fixed / Σ(mix% × unit contribution)`. State the assumption loudly — mix shift is the usual reason "we hit breakeven volume but lost money."
+
+### Special Order / Pricing Floor Logic
+Accept below full cost IF: price > variable cost + order-specific incremental costs, spare capacity exists (else add opportunity cost of displaced contribution), and no market-spoilage effect (price leakage to existing customers). Full-cost allocations are irrelevant to the decision (product-profitability CM hierarchy).
+
+---
+
+## Technical Analysis Steps
+
+1. **Validate the cost split with code**: regress total cost on volume (slope = variable rate, intercept = fixed proxy); R² < 0.7 → segment the data or find the second driver.
+2. **Breakeven with steps**: piecewise fixed costs create MULTIPLE breakeven points — chart profit vs. volume across the full range including the steps.
+3. **Risk view**: margin of safety, DOL, and a sensitivity table (price ±5%, volume ±10%, variable cost ±5%) — price moves dominate; show why (price flows straight to contribution).
+
+---
+
+## Output Format
+
+### CVP Analysis
+
+**Cost Structure**: fixed/variable/step split with derivation basis.
+
+**Breakeven**: units and revenue, with the profit-volume chart description (including steps).
+
+**Decision Answer**: the specific question answered with incremental logic shown.
+
+**Risk Profile**: margin of safety, operating leverage, sensitivity table.
+
+---
+
+## Scripts
+- [calculate.py](./scripts/calculate.py): Deterministic functions for this skill's core computations. Run `python3 scripts/calculate.py` to self-test; import the functions instead of doing mental math.
+
+---
+
+## References
+- [CVP Decision Patterns](./references/cvp-patterns.md): Worked special-order, step-cost, and mix-shift examples.
+
+---
+
+## Related Skills
+- **product-profitability**: The contribution hierarchy feeding CVP.
+- **variance-analysis**: Explaining actual vs. CVP-predicted profit.
+- **budget-forecast**: CVP as the engine of flexible budgets.
+- **pricing decisions**: Pair with unit economics for pricing floors.

package/selected-skills/financeskills/skills/cvp-breakeven/references/cvp-patterns.md

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+# CVP Decision Patterns (worked)
+
+## 1. Basic Breakeven With Target Profit
+Price 500, variable 320, fixed 5,400,000. Contribution 180; CM ratio 36%.
+- Breakeven = 30,000 units / 15,000,000 revenue.
+- After-tax target 1,260,000 at 30% tax → pre-tax 1,800,000 → volume = (5,400,000+1,800,000)/180 = **40,000 units**.
+
+## 2. Step Cost Trap
+Same product, but each 10,000 units of capacity needs a supervisor (600,000).
+Profit at 30,000 units with 3 supervisors: contribution 5,400,000 − fixed 5,400,000 − 1,800,000 = **−1,800,000 (loss!)** — the naive breakeven ignored the steps. Recompute piecewise: breakeven actually lands at 40,000 units (4 supervisors: (5,400,000+2,400,000)/180 = 43,333 → check against the 40,001–50,000 band: feasible at 43,333). Always test the breakeven against the step band it falls in.
+
+## 3. Special Order
+Capacity 100,000; running at 70,000. Export order: 15,000 units at 360 (below full cost of 410 = 320 var + 90 allocated fixed). Incremental freight 12/unit.
+- Incremental contribution = (360 − 320 − 12) × 15,000 = **420,000 → accept**, since spare capacity and separable market.
+- Same order at 95,000 utilization: displaces 10,000 regular units → opportunity cost 1,800,000 vs. order contribution 420,000 → **reject**.
+
+## 4. Mix Shift Reality
+Two products: A (contribution 200, 60% of mix), B (contribution 80, 40%). WACM = 152; fixed 3,040,000 → BE 20,000 total units.
+Actual mix shifts to 40/60: WACM = 128 → BE rises to 23,750. Volume hit 21,000 — above old breakeven, below the new one → loss despite "beating breakeven." Track contribution-weighted volume, not raw units.
+
+## 5. Operating Leverage Comparison
+Two structures, same 1,000,000 profit at current volume:
+- Automated: contribution 4,000,000, DOL 4.0
+- Manual: contribution 1,600,000, DOL 1.6
+Volume −15% → automated profit −60% (400,000); manual −24% (760,000). High fixed-cost structures are bets on volume; say so when proposing automation.
+
+## 6. Price vs. Volume Sensitivity Asymmetry
+At CM ratio 36%: a 5% price cut needs `5/(36−5) ≈ 16%` volume growth just to hold contribution. The generic discounting request almost never clears this bar — make sales prove the elasticity.

package/selected-skills/financeskills/skills/debt-payoff/EXAMPLE.md

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+# Worked Example - debt-payoff
+
+## Ask
+
+> I have three debts: a credit card with a $4,500 balance at 22% APR ($90 minimum), a car loan with $8,000 at 6% APR ($180 minimum), and a student loan with $12,000 at 5% APR ($130 minimum). I can put $600/month total toward debt. Which strategy saves me more money — avalanche or snowball?
+
+## What a correct response contains
+
+Should list all three debts clearly. Should model both avalanche and snowball strategies month by month. Should show that avalanche pays off the credit card first (highest rate 22%) and saves more in total interest. Should compare total interest paid and total months to debt-free under each strategy. Should recommend avalanche for this user given the large interest-rate gap.
+
+## File-driven variant
+
+With fixture `evals/files/debts.csv`:
+
+> From the attached debt list (evals/files/debts.csv), calculate the total interest paid and months to debt-free under both avalanche and snowball, with $200/month extra payment. Show which strategy saves more.
+
+Expected: Avalanche — 38 months, $2,847 total interest. Snowball — 38 months, $3,201 total interest. Avalanche saves $354 in interest.
+
+## Compute, don't estimate
+
+All figures above come from [`scripts/calculate.py`](./scripts/calculate.py) — import its functions rather than doing arithmetic in prose.

package/selected-skills/financeskills/skills/debt-payoff/SKILL.md

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+---
+name: debt-payoff
+description: When the user wants to pay off debt, compare the avalanche vs. snowball strategy, model a payoff timeline, calculate total interest paid, or find the fastest way out of debt. Also use when the user mentions "credit card debt," "student loans," "debt free," "minimum payments," "how long to pay off," or "which debt first."
+metadata:
+  version: 1.0.0
+---
+
+# Debt Payoff Planning
+
+You are a Debt Elimination Coach. Your goal is to build a mathematically sound payoff plan that minimises total interest paid while keeping the user motivated.
+
+## Initial Assessment
+
+1. **Debt Inventory**
+   - List all debts: name, current balance, annual interest rate, minimum monthly payment.
+   - Are any debts in collections or subject to a 0% promotional rate with an expiry date?
+
+2. **Available Cash Flow**
+   - How much can the user put toward debt each month (minimums + any extra)?
+   - Is this fixed or variable?
+
+3. **Behavioural Preference**
+   - Does the user prioritise **mathematical optimality** (avalanche) or **psychological quick wins** (snowball)?
+
+---
+
+## Payoff Strategies
+
+### Avalanche Method (Lowest Total Interest)
+1. Pay the minimum on every debt.
+2. Direct all extra cash to the debt with the **highest annual interest rate**.
+3. When that debt is paid off, roll its payment to the next highest-rate debt.
+
+Best for: minimising total interest paid. Mathematically optimal.
+
+### Snowball Method (Fastest Motivational Wins)
+1. Pay the minimum on every debt.
+2. Direct all extra cash to the debt with the **lowest balance**.
+3. When that debt is paid off, roll its payment to the next lowest-balance debt.
+
+Best for: users who need early wins to stay motivated. May cost more in interest.
+
+### Hybrid Approach
+Start with the snowball to clear one or two small balances, then switch to avalanche for the remaining high-rate debts.
+
+---
+
+## Technical Steps
+
+### 1. Compute Monthly Interest per Debt
+`Monthly Interest = Balance × (Annual Rate / 12)`
+
+### 2. Model the Payoff Schedule
+Simulate month by month: apply interest, pay minimums, apply extra to target debt.
+
+### 3. Compare Strategies
+Generate side-by-side: months to debt-free, total interest paid, total amount paid.
+
+### 4. Sensitivity Check
+What happens if the user increases the monthly extra payment by $100 or $200?
+
+---
+
+## Output Format
+
+**Debt Inventory Table**
+- Balance, rate, minimum payment, projected payoff month per strategy.
+
+**Strategy Comparison**
+- Avalanche vs. Snowball: total interest, total paid, months to debt-free.
+
+**Payoff Schedule**
+- Month-by-month balances for each debt under the chosen strategy.
+
+**Acceleration Scenarios**
+- Impact of +$100, +$200 extra monthly payment.
+
+---
+
+## Scripts
+- [calculate.py](./scripts/calculate.py): Deterministic functions for this skill's core computations. Run `python3 scripts/calculate.py` to self-test; import the functions instead of doing mental math.
+
+---
+
+## References
+- [Debt Strategies Guide](./references/debt-strategies.md): Avalanche vs. snowball research and behavioural finance insights.
+- [Interest Calculation Reference](./references/interest-calculations.md): How daily vs. monthly compounding affects payoff timelines.
+
+---
+
+## Related Skills
+- **personal-budgeting**: Identify the monthly surplus to allocate as extra debt payment.
+- **tax-planning**: Some interest (student loans, mortgages) may be tax-deductible — factor this in.
+- **net-worth-tracker**: Track liability reduction as net worth improvement.

package/selected-skills/financeskills/skills/debt-payoff/references/debt-strategies.md

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+# Debt Payoff Strategies
+
+## Avalanche Method
+Target the debt with the **highest interest rate** first while paying minimums on all others.
+
+**Why it wins mathematically**: High-rate debt accrues interest fastest. Eliminating it first reduces the total interest pool immediately.
+
+**Research backing**: A 2012 study by Amar et al. (*Journal of Marketing Research*) confirmed that the avalanche method minimises total interest paid in all cases.
+
+## Snowball Method
+Target the debt with the **lowest balance** first while paying minimums on all others.
+
+**Why it wins behaviourally**: Clearing a debt account produces a concrete "win" that boosts motivation. Dave Ramsey popularised this approach in *The Total Money Makeover* (2003).
+
+**Research backing**: Keinan & Kivetz (2011) found that psychological momentum from small wins can improve follow-through on long-term financial plans.
+
+## When Avalanche Beats Snowball by the Most
+- Large spread between the highest and lowest interest rates (e.g., 22% vs. 4%).
+- Large balances on high-rate debts.
+- User has strong discipline and doesn't need the motivational boost.
+
+## When to Consider Snowball Instead
+- Multiple small balances that can be cleared within 1–3 months.
+- User has previously abandoned debt payoff plans.
+- The interest rate difference between debts is small (<3%).
+
+## Rollover Principle (Both Methods)
+When a debt is paid off, add its former minimum payment to the payment for the next target debt. This "rollover" or "debt snowball roll" accelerates payoff without requiring extra income.
+
+## Sources
+- Amar, M., Ariely, D., Ayal, S., Cryder, C. E., & Rick, S. I. (2011). Winning the battle but losing the war: The psychology of debt management. *Journal of Marketing Research*.
+- Ramsey, D. (2003). *The Total Money Makeover*. Thomas Nelson.

package/selected-skills/financeskills/skills/debt-payoff/references/interest-calculations.md

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+# Interest Calculation Reference
+
+## Monthly Interest on a Declining Balance
+`Monthly Interest = Outstanding Balance × (Annual Rate / 12)`
+
+This is simple monthly compounding, used by most consumer loans and credit cards in the US.
+
+## Daily Periodic Rate (Some Credit Cards)
+`Daily Rate = Annual Rate / 365`
+`Monthly Interest = Average Daily Balance × Daily Rate × Days in Month`
+
+When a card uses average daily balance, paying early in the cycle reduces the interest charge.
+
+## Amortisation
+For instalment loans (car, mortgage, personal), each payment is split between interest and principal:
+- `Interest Portion = Remaining Balance × Monthly Rate`
+- `Principal Portion = Monthly Payment − Interest Portion`
+
+The minimum payment on an amortising loan is set to pay off the loan in exactly N months. Extra payments reduce principal directly and shorten the loan.
+
+## APR vs. APY
+- **APR (Annual Percentage Rate)**: The stated rate; does not account for compounding within the year.
+- **APY (Annual Percentage Yield)**: The effective rate after intra-year compounding.
+- For monthly compounding: `APY = (1 + APR/12)^12 − 1`
+
+## Practical Note
+The simulations in `calculate.py` use monthly compounding (APR/12 per month), consistent with US credit card and consumer loan disclosures.

package/selected-skills/financeskills/skills/debt-restructuring/EXAMPLE.md

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+# Worked Example - debt-restructuring
+
+## Ask
+
+> Our company has $10M in debt and only $500k in annual EBITDA. We can't pay the interest. What are our options?
+
+## What a correct response contains
+
+Should identify a severe solvency crisis. Should suggest a 'Haircut' or a 'Debt-for-Equity Swap'. Should discuss recovery values in restructuring vs liquidation. Should provide a Restructuring Proposal structure.
+
+## File-driven variant
+
+With fixture(s) `evals/files/capital_structure.csv`:
+
+> Run the priority waterfall in the attached capital structure (evals/files/capital_structure.csv) at the stated distributable enterprise value. Recovery $ and % per tranche, and identify the fulcrum security.
+
+Expected: Senior secured 100% ($500m); senior unsecured 75% ($300m); subs 0%. Fulcrum = senior unsecured.
+
+## Compute, don't estimate
+
+All figures above come from [`scripts/calculate.py`](./scripts/calculate.py) - import its functions rather than doing arithmetic in prose.

package/selected-skills/financeskills/skills/debt-restructuring/SKILL.md

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+---
+name: debt-restructuring
+description: When the user wants to reorganize an entity's outstanding obligations to restore solvency. Also use when the user mentions "insolvency," "Chapter 11 prep," "creditor negotiations," "debt-for-equity swap," "haircut calculations," or "renegotiating loans."
+metadata:
+  version: 1.0.0
+---
+
+# Debt Restructuring
+
+You are a Distressed Debt Specialist. Your goal is to design a plan that prevents liquidation by renegotiating terms with creditors to match the entity's actual cash flow capacity.
+
+## Initial Assessment
+
+1. **Solvency Context**
+   - What is the total debt load (Secured vs. Unsecured)?
+   - What are the current interest rates and maturity dates?
+   - What is the current "Interest Coverage Ratio"?
+
+2. **Cash Flow Reality**
+   - What is the "Free Cash Flow to the Firm" (FCFF) available for debt service?
+   - How much cash is currently on the balance sheet?
+
+---
+
+## Restructuring Framework
+
+### Priority Order
+1. **Liquidity Preservation** (Stopping the bleeding).
+2. **Capital Structure Analysis** (Identifying where the 'break' in the stack is).
+3. **Restructuring Strategy** (Haircut, Extension, or Swap?).
+4. **Creditor Negotiation Plan** (Incentivizing creditors to accept the deal).
+
+---
+
+## Technical Restructuring Steps
+
+### 1. Haircut Calculation
+- Determine the percentage reduction in principal required to make the debt sustainable based on projected cash flows.
+
+### 2. Debt-for-Equity Swap
+- Model the conversion of debt into equity, determining the ownership stake creditors would receive in exchange for forgiving debt.
+
+### 3. Covenant Renegotiation
+- Propose new, more flexible covenants (e.g., higher Debt/EBITDA limits) to avoid technical default during the recovery period.
+
+---
+
+## Output Format
+
+### Restructuring Proposal Structure
+
+**The Situation**
+- Current Debt Waterfall.
+- Proof of imminent default if no action is taken.
+
+**The Proposal**
+- Specific terms for each creditor class (e.g., "Senior lenders extend maturity by 24 months").
+- Pro-forma Balance Sheet (Before vs. After).
+
+**Creditor Incentive**
+- Comparison of "Recovery in Restructuring" vs. "Recovery in Liquidation."
+
+---
+
+## Scripts
+- [calculate.py](./scripts/calculate.py): Deterministic functions for this skill's core computations. Run `python3 scripts/calculate.py` to self-test; import the functions instead of doing mental math.
+
+---
+
+## References
+- [Restructuring Strategies](./references/restructuring-types.md): Haircuts vs. Swaps.
+- [Creditor Rights](./references/creditor-priority.md): Understanding the waterfall.
+
+---
+
+## Related Skills
+- **risk-assessment**: For identifying the default risk before it happens.
+- **financial-analysis**: For auditing the cash flow available for restructuring.
+- **treasury-management**: For managing the immediate liquidity crisis.

package/selected-skills/financeskills/skills/debt-restructuring/references/creditor-priority.md

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+# Creditor Priority and the Waterfall
+
+## Absolute Priority Order (typical)
+1. Super-priority / DIP financing, admin expenses of the proceeding
+2. Secured creditors — to the value of their collateral (deficiency claims drop to unsecured)
+3. Priority unsecured (statutory: employees' wages, certain taxes — caps vary by jurisdiction)
+4. Senior unsecured
+5. Subordinated / mezzanine (per subordination agreements)
+6. Preferred equity
+7. Common equity
+
+## Recovery Waterfall Mechanics
+1. Establish distributable value (going-concern EV from restructuring valuation, or liquidation proceeds).
+2. Allocate collateral value to each secured class (collateral-by-collateral; watch shared vs. exclusive liens).
+3. Secured claim = min(claim, collateral value); excess claim joins unsecured pool pari passu.
+4. Distribute remaining value down the ladder until exhausted — the class receiving partial recovery is the **fulcrum security** (it typically converts to equity and controls the negotiation).
+
+## Worked Micro-Example
+EV = 400. Secured claim 250 (collateral 300) → recovers 250 in full. Remaining 150 to senior unsecured claims of 200 → 75% recovery; fulcrum = senior unsecured. Sub debt and equity: zero.
+
+## Complications
+- **Structural subordination**: lenders at OpCo sit ahead of HoldCo creditors regardless of label — map the org chart and guarantees first.
+- **Guarantee/upstream claims**: double-dip claims can recover from multiple estates.
+- **Intercreditor agreements**: payment vs. lien subordination, standstill periods.
+- **Cram-down**: junior classes get nothing until seniors are paid in full (absolute priority), subject to negotiated gifting.
+- **Nigeria/Commonwealth**: employee claims and secured creditor enforcement rights per CAMA 2020 and applicable security interests (perfection status decides everything — verify registrations).

package/selected-skills/financeskills/skills/debt-restructuring/references/restructuring-types.md

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+# Debt Restructuring Types
+
+## Out-of-Court (consensual)
+| Type | Mechanics | When |
+|---|---|---|
+| Amend & extend | Push maturity, fee + margin bump | Liquidity timing issue, solvent business |
+| Covenant waiver/reset | Temporary or permanent covenant relief | Technical breach, fundamentals intact |
+| Forbearance | Lender agrees not to enforce for a period | Buys negotiation time post-default |
+| Debt-for-debt exchange | New notes (longer/cheaper/junior-to-senior uptier) for old | Discounted capture, maturity wall |
+| Debt-for-equity swap | Creditors take equity, debt extinguished | Over-levered but viable operations |
+| New money + priming | Fresh capital senior to existing (uptiering/drop-down) | Liquidity crisis; expect lawsuits — check docs |
+| Distressed buyback | Issuer repurchases debt below par | Cash-rich issuer, bonds trading low |
+
+## In-Court
+- **Chapter 11 (US)**: debtor-in-possession, automatic stay, plan needs one impaired accepting class + cram-down power; prepacks compress timeline to 1–3 months.
+- **Scheme of arrangement (UK/Commonwealth)**: 75% by value per class binds holdouts; no automatic stay.
+- **Nigeria**: CAMA 2020 introduces company voluntary arrangements and administration as rescue alternatives to receivership/winding-up; AMCON intervention for eligible bank debt.
+
+## Accounting Consequences (debtor side)
+- IFRS 9: terms "substantially different" (≥10% PV test or qualitative) → extinguish old, recognize new at FV, gain/loss to P&L. Otherwise modify: recompute carrying amount at original EIR, catch-up to P&L.
+- TDR/concession analysis drives creditor-side impairment.
+
+## Selection Logic
+Liquidity problem → extend/waive. Solvency problem → haircut or equitize. Holdout risk high → court process. Always model the restructured entity's capital structure to a sustainable leverage (typically ≤ 3–4x) or the restructuring just recycles the problem.

package/selected-skills/financeskills/skills/deferred-tax/EXAMPLE.md

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+# Worked Example - deferred-tax
+
+## Ask
+
+> Equipment carrying amount 90M, tax written-down value 65M, tax rate 30%. What's the deferred tax and which side?
+
+## What a correct response contains
+
+Taxable temporary difference 25M (carrying exceeds tax base on an asset) -> deferred tax LIABILITY of 7.5M.
+
+## File-driven variant
+
+With fixture(s) `evals/files/temporary_differences.csv`:
+
+> Tax rate 30%. For each temporary difference in the attached file (evals/files/temporary_differences.csv), classify it as taxable or deductible, compute the DTL/DTA, and note that the warranty provision is a LIABILITY (carrying 250,000, tax base nil) and the revaluation difference goes through OCI.
+
+Expected: PP&E: taxable TD 300,000 -> DTL $90,000. Warranty: deductible TD 250,000 -> DTA $75,000. Revaluation: taxable TD 200,000 -> DTL $60,000 recognized in OCI.
+
+## Compute, don't estimate
+
+All figures above come from [`scripts/calculate.py`](./scripts/calculate.py) - import its functions rather than doing arithmetic in prose.

package/selected-skills/financeskills/skills/deferred-tax/SKILL.md

@@ -0,0 +1,86 @@
+---
+name: deferred-tax
+description: When the user wants to compute or review deferred tax under IAS 12 or ASC 740. Also use when the user mentions "temporary differences," "deferred tax asset," "DTA recognition," "tax base," "effective tax rate reconciliation," "valuation allowance," "tax provision," or "unused tax losses."
+metadata:
+  version: 1.0.0
+---
+
+# Deferred Tax (IAS 12 / ASC 740)
+
+You are a Tax Accounting Specialist. Your goal is to compute the deferred tax position from temporary differences, assess DTA recoverability, and explain the effective tax rate.
+
+## Initial Assessment
+
+1. **Inputs**
+   - Balance sheet with carrying amounts; tax bases per tax computation/fixed asset tax register.
+   - Enacted (or substantively enacted) tax rates expected to apply when differences reverse.
+   - Unused tax losses and credits, with expiry profile and local utilization rules.
+
+2. **Jurisdiction Rules**
+   - Loss carryforward limits (e.g., Nigeria: indefinite carryforward for most companies; check minimum tax interplay), capital allowance regimes vs. book depreciation, non-deductibles.
+
+---
+
+## Computation Framework
+
+### The Balance Sheet Approach
+For every asset/liability: `Temporary difference = Carrying amount − Tax base`
+- Asset carrying > tax base → **taxable** TD → deferred tax LIABILITY.
+- Asset carrying < tax base → **deductible** TD → deferred tax ASSET.
+- Liabilities mirror (provision with nil tax base → DTA).
+
+### Classic Sources
+| Item | Direction (typical) |
+|---|---|
+| Accelerated capital allowances vs. book depreciation | DTL |
+| Provisions deductible when paid (gratuity, leave, ECL for non-banks) | DTA |
+| Revaluation surplus (book up, tax base unchanged) | DTL (through OCI) |
+| Unused tax losses | DTA (recognition test!) |
+| ROU asset / lease liability (net approach by jurisdiction) | Net DTA usually |
+| Unrealized intragroup profits | DTA at BUYER's rate |
+
+### Exceptions (no deferred tax)
+Initial recognition exemption (asset/liability in a non-business-combination transaction affecting neither book nor tax profit — narrowed for leases/AROs by 2021 amendment: gross DTA and DTL required), goodwill initial recognition, investments in subs where reversal is controlled and not probable.
+
+### DTA Recognition Test
+Recognize only to the extent future taxable profit is PROBABLE: reversal of existing DTLs (same jurisdiction/period) → forecasts (the more recent the losses, the stronger the evidence needed — "convincing other evidence" after recent losses) → tax planning opportunities. US GAAP: recognize fully, then valuation allowance under more-likely-than-not.
+
+---
+
+## Technical Analysis Steps
+
+1. **Build the TD schedule with code**: item, carrying, tax base, TD, rate, DTA/DTL, movement split P&L / OCI / equity.
+2. **Prove the ETR reconciliation**: statutory rate → non-deductibles, exempt income, unrecognized DTAs, rate changes, prior-year true-ups → effective rate. Unexplained residual > 0.5% = error hunt.
+3. **Rate change handling**: remeasure ALL deferred balances at the new enacted rate; backward trace to where the original TD was booked (P&L vs OCI).
+
+---
+
+## Output Format
+
+### Deferred Tax Schedule & Memo
+
+**TD Schedule**: per-item table with carrying amount, tax base, TD, rate, closing DTA/DTL, movement analysis.
+
+**DTA Recognition Memo**: evidence assessment for loss DTAs.
+
+**ETR Reconciliation**: statutory-to-effective bridge.
+
+**Entries**: Dr/Cr split across P&L, OCI, equity.
+
+---
+
+## Scripts
+- [calculate.py](./scripts/calculate.py): Deterministic functions for this skill's core computations. Run `python3 scripts/calculate.py` to self-test; import the functions instead of doing mental math.
+
+---
+
+## References
+- [Temporary Difference Catalogue](./references/td-catalogue.md): Worked examples of the common differences and the ETR bridge.
+
+---
+
+## Related Skills
+- **tax-planning**: For the planning that creates or uses these positions.
+- **fixed-asset-accounting**: Capital allowances vs. depreciation is usually the biggest TD.
+- **corporate-consolidation**: Consolidation adjustments carry their own deferred tax.
+- **statement-preparation**: Presentation and disclosure of the tax line.