Amortization of discount on Bonds Payable
Amortization of discount on Bonds Payable (amortization of premium on Bonds Payable) is writing off the bond premium or discount as a decrease or increase to interest expense for each interest period.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Amortization of discount on Bonds Payable (amortization of premium on Bonds Payable). Writing off the bond premium or discount as a decrease or increase to interest expense for each interest period.
Related concepts
- Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.
