GAAP requires that debt issue costs be recorded separately and amortized over the term of the related debt. Describe a logical alternative to this accounting treatment.

Q: Briefly explain off-balance-sheet assets and off-balance-sheet liabilities with an appropriate…

A: Off-balance-sheet items seem to be those items that do not show up on a company's balance sheet.…

Q: Explain how to account for the impairment of an available-for-sale debt investment.

A: Debt Investment:   A debt investment involves loaning out the money to an institution in exchange…

Q: escribe what is termed as “contingent liabilities” and discuss their accounting treatment.

A: Liabilities can be define as the group of financial obligations which have to be paid by the…

Q: Debt issuance costs are: Accounted for as a deduction from the equity balance on the balance sheet…

A: Equity, liabilities, and assets are part of the balance sheet of a company.  The balance sheet is…

Q: How is Collateralized debt obligation created. Plelase explain in details

A: Collateralized debt obligation (CDO): Collateralized debt obligation (CDO) is the bundle of loans…

Q: Identify the underlying characteristics of debt instruments and describe the basic approach to…

A: Debt:   It refers to the money that is owed or due to outsiders by the organization.

Q: What are the general rules for measuring and recognizing gain or loss by a debt extinguishment with…

A: Long-term liabilities   Long-term liabilities are obligations that the company needs to pay after at…

Q: Which of the following is stated correctly? a.    Current liabilities follow non-current liabilities…

A: Definition:   Liability: Liability is an agreement made by a company to pay a certain amount for the…

Q: Explain the Structuring the Payment for a Target Debt Coverage Ratio?

A: Coverage Ratios are the ratios that depict that on an average how a firm would be able to cover its…

Q: Must obligations be known contractual debts in order to be reported as liabilities?

A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…

Q: explain the derecognition of debt;

A: Derecognition of debt As bonds are issued, then an entity may leave a bond that is outstanding till…

Q: Discuss in brief the types of collateralized debt Obligation. Please explain in details.

A: Solution-  Collateral Debt Obligation [CDO] is a sophisticated project financing outcome that's also…

Q: Define Debt Issue Costs.

A: Bonds: Bonds are a kind of interest bearing notes payable, usually issued by companies, universities…

Q: Explain how to account for the impairment of held-to-maturity debt security.

A: Held to maturity securities are those securities which are purchased to be held till maturity…

Q: Which of the following items would most likely be classifi ed as a fi nancing activity? A . Issuance…

A: Financing activities are a major part of any entity. These activities are correlated to the issuance…

Q: How are gains and losses from extinguishment of a debt classified in the income statement? What…

A: Bonds payable: A legal contract for a long-term debt made between the lender and the beneficiary;…

Q: Describe the key characteristics of a debt investment and demonstrate how to account for a purchase…

A: Debt Instrument:   A debt instrument is a financial instrument that enables the issuer of the…

Q: Define debt service requirements

A: Debt service requirement is very much essential for a company if it wants to maintain a good credit…

Q: Describe the method of determining the Cost of Debt?

A: The cost of debt is the profit a business offers its debtors and creditors. These capital suppliers…

Q: Describe the accounting for the extinguishment of debt.

A:

Q: Explain in words the difference between total debt and total liabilities.

A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…