Explain how bond discounts and premiums usually arise. Describe how they are accounted for in the balance sheet and income statement.
Answer to relevant QuestionsDescribe how fair value accounting for long-term debt works. How does it differ from the current accounting using amortized cost?Debt contracts usually place restrictions on the ability of a company to deploy resources and to pursue business activities. These are often referred to as debt covenants.a. Identify where information about such restrictions ...Companies use various financing methods to avoid reporting debt on the balance sheet. Identify and describe some of these off-balance-sheet financing methods.Distinguish between different kinds of deferred credits on the balance sheet. Discuss how to analyze these accounts.The pension cost included in net income is the net periodic pension cost. How does it differ from the economic pension cost? What is the rationale for recognizing the smoothed net periodic pension cost instead of the ...
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