Bonds Payable

Question 1

What is statements effect?

Answer 1

Pv Cff+ when issued
BS - pv sales proceeds (liability). Amortization - difference between int rate and pmt
IS - int rate - int expense
CFS - pmt cfo/ cff

Question 2

Methods of depreciation

Answer 2

Effective int rate amort
Ifrs require

Us gaap prefer

Period 1. Salesproceeds x Mrkt Rate of issue = int exp (pmt +/- amort)
Per 2. Salesproceeds x mrk rate of issue = int expense
Or Straight line method