IFRS requires bond issue costs:
A) to be recorded as an asset.
B) to be excluded while computing the interest expense.
C) to be netted against the carrying amount of the bonds.
D) to be considered when computing income tax payable.

Question

Quizplus · Accepted Answer

Under IFRS, bond issue costs are required to be netted against the carrying amount of the bonds. This approach reduces the carrying amount of the bond liability on the balance sheet and is amortized over the life of the bond.

IFRS Requires Bond Issue Costs