WebThe accounting gain or loss is equal to the difference between the amount paid to extinguish the debt and the net carrying amount of the new debt. The net carrying … WebJun 1, 2024 · Current GASB standards provide guidance on debt extinguishment and refunding. Statement 62 provides guidance for each of these circumstances: Debt is extinguished exclusively using a government’s existing resources (not resources from debt proceeds) Debtor is legally released from being the primary obligor under the debt.
BARS Prior to GASB 88 - Certain Disclosures related to Debt, …
WebJun 23, 2012 · The most common deferred inflows and outflows of resources are gain/loss on debt refunding and imposed nonexchange transactions, such as when taxes are levied for property taxes and received or recognized as a receivable. Government-mandated and voluntary exchange transactions will be reported as an inflow or outflow in the period … WebStatement No. 7, Advance Refundings Resulting in Defeasance of Debt, requires that debt be considered defeased in substance when the debtor irrevocably places cash or other … bramblewick cottage fearby
How to Calculate Gain or Loss on a Bond Redemption
WebMar 27, 2016 · In many cases, calculating the gain or loss on a bond redemption is fairly simple. If you take the redemption proceeds and subtract what you originally paid for the … WebTherefore, the total cost of the new issue is $1,100,000, and the annual savings due to bond refunding is $2,000,000. Bond Refunding Charges. The charges of bond refunding usually include the call price, which is the excess value of a callable bond vis-à-vis its par value without the call option. WebGain or Loss = Net Carry Amount – Repurchase price Net Carry amount of debt is the amount payable at the maturity date adjusted with unamortized premium or discount and transaction cost. The repurchase price is the amount company pays to purchase the security from the market. Gain hagen weather