[Anonymous]

As my understanding of the change from the following reference (I don’t have the most recent textbook),

“Under the revised standard, BIC will be treated similarly to a discount or premium and will be reported as an adjustment to the carrying value of the liability.”

1. any BIC would be deducted from CV of the bond liability, the BIC will be treated as a discount and amortised.

2. Then a journal entry for a bond issued at 90 would be something like this,

dr. Cash xx (face value x 0.9 – BIC)

dr. Discount xx (face value x 0.1 + BIC)

cr. Bond payable xx (face value)

Please let me know what you guys think about my two statements. Thanks!

[Anonymous]

Anyone?

[vodrldnr]

I am studying this part too and struggling to understand it

It's not the answer for your question but Here is some link you can check ..

Bond Issue Costs- New Rules

It ain't About How Hard You Hit

[Author]

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