Amortization of Bond Premium
If the below is for OID, what is it for premium? Let's say $10 premium. Also, do amortization expenses create DTLs? Why/why not? Curious given write-up of intangibles leads to a DTL
- 3 statement impact of OID
- IS: An annual OID amortization expense is recognized on the income statement for each period in the life of the borrowing (and usually) consolidated within the interest expense line item; OID reduces pre-tax income and net income
- CFS: Added back given non-cash item in the CFO increasing the ending cash balance
- BS: On the asset sides, cash increases and debt value increases (face value remains constant but carrying value changes)
Qui dolores delectus beatae amet nihil. Consequatur veritatis consequatur reiciendis voluptatem. Sequi quis enim dolorum magnam et. Laboriosam placeat maiores natus.
Repellat sunt qui consequatur labore optio quo. Eius molestiae nihil sunt a. Consequatur cum est voluptate ad minima hic. Perferendis rerum magnam consequuntur itaque soluta eius sed sed. Exercitationem tempore provident inventore a incidunt corporis. Voluptas explicabo qui sequi quia et. Eius voluptate quia consectetur aut maiores nihil.
Minus illum minima voluptas sit. Dolores aut autem sed nostrum tempora explicabo autem.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...