Bonds issuance costs

[Freejaffacake]

Can someone explain difference in accounting of issuance costs under IFRS and USGAAP?

 

[Oscar]

IFRS: Bond proceeds are lowered by the respective issuance costs, lowering the liability on the BS and with full impact on the income statment at the date of issuance.
US-GAAP: Isuance costs are capitalized and amortized over the lifetime of the bond. At the date of issuance there is no impact on the income statement.
Regards,
Oscar

 

[S2000magician]

’Oscar’ wrote:
US-GAAP: Isuance costs are capitalized and amortized over the lifetime of the bond.

More specifically, they’re shown as an asset (prepaid expense), not a contra-liability.

 

[Freejaffacake]

Oh alright! Thx guys