2 - Select Financial Statement Accounts Flashcards
What is a term bond?
Bonds that are schedule to be outstanding for a fixed period of time, or term.
How is the issue price of a bond determined?
The cash flows from the bond should be discounted at the yield, or market rate.
What are the net proceeds of a bond?
The issue price less the cost to issue the bonds (bonds issue costs should be deducted)
How is the market price of a bond issued at a discount determined?
PV of the principal amount plus the PV of all future interest payments at the market or effective interest rate.
How is the market price of a bond issued at a premium determined?
PV of the principal amount and the present value of all future interest payments, at the market or effective interest rate.
How are debt issuance costs presented?
On the B/S as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts.
What is the standalone selling price at contract inception?
The price at which an entity would sell a promised good or service separately to a customer.
What is the measurement award for equity awards of stock based compensation?
Grant date
What is the measurement date for stock appreciation rights (SARS), which is a liability award?
Date of settlement or remeasured (settled) at the end of each reporting period
