The effective-interest method is required to amortize bond discounts for companies reporting under IFRS.

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This statement is true. Under IFRS, companies are required to use the effective-interest method to amortize bond discounts. This method involves calculating interest expense based on the carrying amount of the bond, which includes both the initial proceeds received and the accrued discount amortization. This approach results in a more accurate representation of the overall cost of borrowing over the life of the bond.

The Effective-Interest Method Is Required to Amortize Bond Discounts for Companies