Describe the difference between GAAP and IFRS in accounting for bond issue costs
What will be an ideal response?
Answer: GAAP requires capitalization and straight-line amortization of the Unamortized Bond Issue Cost over the number of months or periods of the bond issue. IFRS treats the bond issue costs as a cost of borrowing and increases the effective interest rate of the bond issue to account for the bond issue costs.
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________ requires each individual to be focused on the quality of his or her own output
A) Total quality management B) Quality-of-life index C) Integrated business planning D) Organizational restructuring
American Depository Receipts (ADRs) are ________
A) certificates that represent shares of stock in American companies B) dollar deposits made by foreign firms conducting business in the U.S. C) certificates that trade in the U.S. and represent shares of stock in a non-U.S. company D) currency deposits made in the U.S. by firms based in other countries