Chapter 14 - Long-term liabilities. In this chapter, the learning objectives are: Describe the nature of bonds and indicate the accounting for bond issuances, describe the accounting for the extinguishment of debt, explain the accounting for long-term notes payable. | Prepared by Coby Harmon University of California, Santa Barbara Intermediate Accounting Intermediate Accounting Prepared by Coby Harmon University of California, Santa Barbara Westmont College INTERMEDIATE ACCOUNTING F I F T E E N T H E D I T I O N Prepared by Coby Harmon University of California, Santa Barbara Westmont College kieso weygandt warfield team for success 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. After studying this chapter, you should be able to: LEARNING OBJECTIVES 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 debt. Long-Term Liabilities 14 PREVIEW OF CHAPTER Intermediate Accounting 15th Edition Kieso Weygandt Warfield 14 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. Bonds Payable LO 1 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 to supply. Bonds Payable Issuing Bonds Explain the accounting for long-term notes payable. Describe the accounting for the . | Prepared by Coby Harmon University of California, Santa Barbara Intermediate Accounting Intermediate Accounting Prepared by Coby Harmon University of California, Santa Barbara Westmont College INTERMEDIATE ACCOUNTING F I F T E E N T H E D I T I O N Prepared by Coby Harmon University of California, Santa Barbara Westmont College kieso weygandt warfield team for success 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. After studying this chapter, you should be able to: LEARNING OBJECTIVES 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 debt. Long-Term Liabilities 14 PREVIEW OF .
