Long-Term Debt Financial Liabs

Question 1

134. What are bond issue costs?

Answer 1

Bond issue costs are those costs incurred to facilitate the issuance of the bonds.

Question 2

134. When a questions asks about the total amount of “bond liability” and provides information on bond issue costs, how should that info be used?

Answer 2

Bond issue costs should be added on to the net value of the bonds to get to the total “bond liability”.

Question 3

135. In accordance with IFRS what methods may be used to carry a bond on the f/s’s?

Answer 3

1) amortized cost

2) Fair value through profit or loss (FVTPL)