Fasb 14

a) The guidance in this Subtopic applies to receivables and payables that re pay contractual rights to beat bullion or contractual obligations to pay money on hardened or determinable dates, whether or non there is some(prenominal) state provision for arouse, with certain exceptions noned below. Such receivables and payables be collectively referred to in this Subtopic as notes. Some examples are the adjacent: *   Secured and unsecured notes  *  Debentures  *   Bonds  *   Mortgage notes  *  Equipment obligations  * Some accounts receivable and payable. Because Wie signed a note for the equipment, the transaction meets the definitions of Secured and unsecured notes and equip. obligations. 835 30 15 -2 b) If an established exchange price is not determinable and if the note has no ready market, the problem of determining salute value is more(prenominal) difficult. To estimate the present value of a note under(a) such (prenominal) circumstances, an applicable interest grade is approximated that may differ from the stated or coupon rate.

This process of approximation is called imputation, and the resulting rate is called an imputed interest rate 835 -30- 25-3 c) The  snub or premium resulting from the determination of present value in cash or noncash transactions is not an asset or liability separable from the note that gives hiking to it. Therefore, the bank discount or premium shall be inform in the brace sheet as a direct bank discount from or addition to the face amount of the note. It shall not be classified as a deferred charge or deferred credit. 835 30 -45-1A Amortization of disco unt or premium shall be distinguish as inte! rest expense. Issue costs shall be inform in the balance sheet as deferred charges. 835 30 45- 3If you need to get a full essay, order it on our website: OrderEssay.net

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