The information that specifies the circumstances under which an entity shall remove a financial liability ( or part of a financial liability) from its balance sheet can be found in the FASB Codification Topic 470: Debt.The FASB Accounting Standards Codification (ASC) is the authoritative source of generally accepted accounting principles (GAAP) recognized by the FASB to be applied by nongovernmental entities. It is organized into several topics, including the Topic 470 on debt. The Topic 470 of the FASB Codification provides guidance on how an entity should account for different types of liabilities, including current and non-current liabilities, short-term borrowings, long-term debt, and convertible debt.The Topic 470 of the FASB Codification also specifies the circumstances under which an entity should remove a financial liability (or part of a financial liability) from its balance sheet. Specifically, it states that a financial liability (or part of it) is extinguished when the debtor either:discharges the liability (or part of it) by paying the creditor, normally with cash, other financial assets, goods or services; oris legally released from primary responsibility for the liability (or part of it) either by process of law or by the creditor.