Chapter 14 - Long-term liabilities. After completing this chapter you should be able to: Describe the formal procedures associated with issuing long-term debt, identify various types of bond issues, describe the accounting valuation for bonds at date of issuance, apply the methods of bond discount and premium amortization, describe the accounting for the extinguishment of non-current liabilities,. | Prepared by Coby Harmon University of California, Santa Barbara Intermediate Accounting Intermediate Accounting 14th Edition 14 Long-Term Liabilities Kieso, Weygandt, and Warfield Describe the formal procedures associated with issuing long-term debt. Identify various types of bond issues. Describe the accounting valuation for bonds at date of issuance. Apply the methods of bond discount and premium amortization. Describe the accounting for the extinguishment of non-current liabilities. Explain the accounting for long-term notes payable. Describe the accounting for the fair value option. Explain the reporting of off-balance-sheet financing arrangements. Indicate how to present and analyze long-term debt. Learning Objectives Bonds Payable Long-Term Notes Payable Reporting and Analyzing Long-Term Debt Issuing bonds Types and ratings Valuation Effective-interest method Costs of issuing Extinguishment Notes issued at face value Notes not issued at face value Special situations Mortgage notes payable Fair value option Off-balance-sheet financing Presentation and analysis Long-Term Liabilities Bonds Payable Long-term debt consist of probable future sacrifices of economic benefits arising from present obligations that are not payable within a year or the operating cycle of the company, whichever is longer. LO 1 Describe the formal procedures associated with issuing long-term debt. Examples: Bonds payable Long-term notes payable Mortgages payable Pension liabilities Lease liabilities Long-term debt has various covenants or restrictions. Issuing Bonds LO 1 Describe the formal procedures associated with issuing long-term debt. Bond contract known as a bond indenture. Represents a promise to pay: sum of money at designated maturity date, plus periodic interest at a specified rate on the maturity amount (face value). Paper certificate, typically a $1,000 face value. Interest payments usually made semiannually. Used when the amount of capital needed is too large for one lender . | Prepared by Coby Harmon University of California, Santa Barbara Intermediate Accounting Intermediate Accounting 14th Edition 14 Long-Term Liabilities Kieso, Weygandt, and Warfield Describe the formal procedures associated with issuing long-term debt. Identify various types of bond issues. Describe the accounting valuation for bonds at date of issuance. Apply the methods of bond discount and premium amortization. Describe the accounting for the extinguishment of non-current liabilities. Explain the accounting for long-term notes payable. Describe the accounting for the fair value option. Explain the reporting of off-balance-sheet financing arrangements. Indicate how to present and analyze long-term debt. Learning Objectives Bonds Payable Long-Term Notes Payable Reporting and Analyzing Long-Term Debt Issuing bonds Types and ratings Valuation Effective-interest method Costs of issuing Extinguishment Notes issued at face value Notes not issued at face value Special situations Mortgage .
