Superficial Drill Down on Long Term Liabilities Sheet One

Superficial Drill Down on Long Term Liabilities Sheet one: 

• The carrying amount or book value is the net amount at which an item is reported in the financial statements of the enterprise. ​FASB ASC 470-60-35-2 requires that a debtor in a troubled debt restructuring recognize a gain measure as “the excess of (i) the carrying amount of the payable settled…over (ii) the fair value of the assets transferred to the creditor.”
• Serial bonds mature in installments - part of the total principal is paid back each year
• Debenture bonds are unsecured debt
• Bonds issued at a discount - must amortize the discount up to the balance sheet date. 
• ​Market price of a bond issued at a discount is equal to the present value of its principal amount plus the present value of all future interest payments - at the market rate; market price of a bond issued at a premium is equal to the present value of its principal amount and the present value of all future interest payments, at the market interest rate.
• Interest paid on the face amount vs. the interest expense is  multiplied by the carrying amount. The difference of these amounts will be the discount amortization added to the carrying amount of the bonds.
• When a company is obligated to pay a specified, even if it does not take delivery of the contracted goods, there exists an unconditional purchase commitment - not reported on the balance sheet, but disclosed in notes. 
• Interest must be recognized as it is accrued, not when it is paid.

cc: Reporting