When bonds are retired before their maturity date:

Name: When bonds are retired before their maturity date:
Brand: Quizplus
Rating: 4.7 (54 reviews)

Question

Quizplus · Accepted Answer

When bonds are retired before their maturity date, the issuing company may report a non-operating gain or loss, depending on whether the amount paid to retire the bonds is greater or less than the carrying value of the bonds. If the amount paid is greater, it will result in a loss; if the amount paid is less, it will result in a gain. GAAP is not violated by retiring bonds before maturity date.

When Bonds Are Retired Before Their Maturity Date