Accounting Lecture 13 - Bond Issuances, Amortization of Discounts and Premiums

[RawwestHide]

thank you man

[carolynsue2]

thanks, very good explantion!

[michaeljon954]

ACCOUNTING IS EVIL. but thanks good video

[duardie2]

what does it means par?

[AccountingTutor]

@duardie2

Hi. The concept of par value is explained in the video at time mark 1:40.

[mitalamit]

Sir ,

This was very helpful. Thank you so much . Would Request you to keepmaking these videos. I have learnt in 15 mins what was not explained in a 3 month account course.



[theplaymaker15cv]

Very well explained. Although I must mention, the "Straight-Line" amortization of the discount/premium is not GAAP. The effective interest method is used for GAAP and external reporting purposes

[AccountingTutor]

@theplaymaker15cv

Hi. You are quite correct, but remember also that the principle of materiality would allow the use of straight-line as long as the difference between it and effective interest is immaterial. Straight-line is illustrated in most text books because it is so easy to explain and understand. Effective interest is introduced in more advanced courses.

[igottosalisbury]

Explained so well. Thank you very much. 

[christineonthecoast]

thank you thank you thank you.

[KingofHearts]

Thank you for this video. I couldn't for the life of me figure out how to amortize the discount on bonds payable and why we consider it an interest expense.

You've helped lots! Thanks again!

[RANIASLD]

Dear Sir,

Very useful video.

can you please upload video on Held to maturity, Assets for Sale and & short term Investments and Deposits?

Thanks

ASLD