.png)
ACCTG TERMS: BONDS PAYABLE
Here are some accounting terms, particularly terms that are related to bonds.
For understanding and simplification.
TERMS
1. Debt Instrument**
2. Financial Liability**
3. Bond Indenture - A document that shows in detail of the bond and the rights and duties of the borrower and other parties to the contract.
4. Nominal Rate - An interest rate that has been appearing on the face of the bonds, that has been favored by bondholders.
5. Effective Rate - An interest rate that exactly discounts estimated cash future payments through the expected life of the bonds payable or when appropriate, a shorter period to the net carrying amount of the bonds payable.
6. Bond Premium - A scenario wherein the effective rate is lower than nominal rate.
7. Bond Discount- A scenario wherein the nominal rate is higher than effective rate.
8. Bond Issue Cost - Also called "transaction costs", Bond issue costs are incremental costs that are directly attributable to the issue of bonds payable.
9. Bond - It is a formal, unconditional promise, made under seal, to pay a specified sum of money at a determinable future date, and to make periodic interest payments at a stated rate until a principal sum is paid.
10. Term Bonds - Bonds with single date of maturity.
12. Serial Bonds - Bonds with a series of maturity dates or bonds that mature by installments.
12. Coupon Bonds - The name of the bondholder is not registered. Accordingly, interest is paid periodically to the bearer of the bond or the person submitting a detachable interest coupon.
13. Zero-coupon Bonds - Coupon bonds with no interest.
14. Convertible Bonds - Bonds that can be exchanged for equity shares of the issuing entity.
15. Callable Bonds - Bonds that can be called in for payment before the date of maturity.
** updated later.
See more of the following standards:
PAS 1
PAS 37
PFRS 9
0 comments: