TAILIEUCHUNG - Lecture Intermediate accounting (4/e): Chapter 14 - Spiceland, Sepe, Tomassini

Chapter 14 - Bonds and long-term notes. This chapter continues the presentation of liabilities. Specifically, the discussion focuses on the accounting treatment of long-term liabilities. Long-term notes and bonds are discussed, as well as the extinguishment of debt and debt convertible into stock. | Bonds and Long-Term Notes 14 Chapter 14: Bonds and Long-Term Notes Learning Objectives Identify the underlying characteristics of debt instruments and describe the basic approach to accounting for debt. LO1 Our first learning objective in Chapter 14 is to identify the underlying characteristics of debt instruments and describe the basic approach to accounting for debt. Nature of Long-Term Debt Obligations that extend beyond one year or the operating cycle, whichever is longer Mirror image of an asset Accrue interest expense Reported at present value Loan agreement restrictions Long-term obligations extend beyond one year or the normal operating cycle, whichever is longer. Long-term obligations are evidenced by debt agreements called indentures. As we proceed through this material, we will perform several present value calculations in relation to bonds and long-term notes payable. Bonds Bond Selling Price Bond Certificate Interest Payments Face Value Payment at End of Bond Term At Bond Issuance Date Company Issuing Bonds Subsequent Periods Investor Buying Bonds Company Issuing Bonds Investor Buying Bonds Part I On the date the bonds are issued, the company receives the selling price of the bond, and the investor receives the bond certificate. Part II In subsequent periods, the company pays the investors interest for the use of their money. At the maturity date of the bond the company must return the face amount of the bonds to the investors. The Bond Indenture Debenture Bond Mortgage Bond Subordinated Debenture Coupon Bonds Callable Sinking Fund Serial Bonds Convertible Bonds The indenture is the written specific promises made by the company to the bondholders. Types of Bonds A debenture bond is merely an unsecured bond. A sinking fund bond requires the company to set aside funds to retire the bonds at maturity. Callable bonds may be redeemed by the company prior to maturity. Mortgage bonds are secured bonds. The bonds are secured either by specific pieces of .

• Kế toán - Kiểm toán
• Intermediate accounting
• Lecture Intermediate accounting
• Financial Accounting
• Long term debt
• Bond indenture
• Recording bonds
• Accounting process
• Accounting equation
• Accounting processing cycle
• Stock issuance
• Estimating reserves
• Liquidating dividends
• Accounting changes
• Error corrections
• Accounting choices
• Theoretical structure
• Accrual accounting
• Financial accounting environment
• Accounting for leases
• Leasing environment
• Accounting by lessee
• Special accounting problems
• Cash versus accrual accounting
• International standard setting
• Accounting standards
• Accounting assists
• The challenges facing accounting
• Income taxes
• Accounting for income taxes
• Deferred tax liabilities
• Error analysis
• Accounting policy
• Accounting estimate
• Accounting policies
• Financial reporting
• Accounting information system
• Measurement issues
• Characteristics of accounting
• Capital allocation process