Superficial Drill Down on Long Term Liabilities Sheet Two

Superficial drill down on long term liabilities sheet two: 

• Creditors should recognize property received at the fair value of the property received. 
• ASU 2015-03 requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability, consistent with debt discounts.
• Corporations sometimes issue certificates with bonds, known as stock warrants - fair value of warrants on issuance is the fair value * the number of warrants. This amount would increase stockholders’ equity. Total cash received for the bonds with warrants is reflective of the issuance * the premium. The difference of those to amounts will be allocated to the bonds payable account (long-term debt).
• Bond issued for a premium, the issuer receives more than the face amount of the debt upon issuance - therefore, if not amortized, interest expense will be overstated and the equity will be understated (given that net income will be understated).
• To classify a liability as long term, the enterprise must have the intent and ability to refinance the obligation. 
• Term bonds are bonds which are scheduled to be outstanding for a fixed period of time.
• When note payables are exchanged for services, and the interest rate is not stated or not reasonable, note should be recorded at fair value of the services exchanged or at the amount that approximates market value of the note - whichever is more clearly determinable.
• FASB ASC 480-10-25-8 - both embodies an obligation to repurchase the issuer's equity shares, or is indexed to such an obligation AND requires or may require the issuer to settle the obligation by transferring assets.
• FASB ASC 835-30 - does not require any special treatment for notes maturing in less than one year. 
• The face amount of a note less the discount is the initial proceeds or the initial carrying value of the note.

cc: Reporting