GAAP Policies and Procedures, Second Edition

Chapter 10. Long-Term Debt

Definitions of Terms			256
Concepts and Examples			256
	Overview of Bonds		256
	Debt Classification		257
	Bonds Sold at a Discount or Premium to Their Face Value		258
	Effective Interest Method		258
	Debt Issued with No Stated Interest Rate		260
	Debt Issuance Costs		260
	Notes Issued with Attached Rights		260
	Notes Issued for Property		261
	Extinguishment of Debt		262
	Scheduled Bond Retirement		263
	Convertible Debt		264
	Convertible Debt Issued in the Money		264
	Convertible Debt—Accrued but Unpaid Interest on Converted Debt		265
	Convertible Debt—Subsequent Change in Offering to Induce Conversion		266
	Debt Issued with Stock Warrants		266
Decision Trees			267
Policies			268
	Notes and Bonds		268
	Extinguishment of Debt		268
	Convertible Debt		269
	Debt Issued with Stock Warrants		269
Procedures			269
	Notes and Bonds—Borrowing Short-Term Funds		269
	Notes and Bonds—Loan Collateralization Report		270
	Effective Interest Method		270
	Extinguishment of Debt		270
	Convertible Debt		271
	Debt Issued with Stock Warrants		272
Controls			272
	Notes and Bonds		272
	Effective Interest Method		274
	Extinguishment of Debt		274
	Convertible Debt		274
Forms and Reports			275
	Notes and Bonds—Loan Borrowing/Paydown Form		275
	Notes and Bonds—Loan Collateralization Report		276
	Notes and Bonds—Bond Status Report		276
Footnotes			278
	Disclosure of Loans		278
	Disclosure of Loan Guarantees		278
	Disclosure of Unused Credit Facilities		278
	Disclosure of Related-Party Loans		279
	Disclosure of Loan Acceleration		279
	Disclosure of Callable Obligations		279
	Disclosure of Debt Restructuring		280
	Disclosure of Loan ...