WEEK ONE DICUSSION ONE ACC306 Write: When bonds are issued at other than par value, a discount or premium is recorded. Th
WEEK ONE DICUSSION ONE ACC306Write: When bonds are issued at other than
par value, a discount or premium is recorded. This discount or premium is amortized over the life of the bond. However, callable bond may be retired before the maturity date, which leaves a loss or gain to be recognized. Read the Income Recognition Rules Related to Callable Bonds: Changes Coming article.
The third paragraph of this article discusses that all premiums on callable debt securities should be amortized to the earliest call date and all discounts on callable debt securities should amortize to the maturity date.
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