ACC 304 All Assignments ACC 304 All Assignments | Page 236

recorded as a reduction in the carrying value of bonds payable.
accumulated in a deferred charge account and amortized over
the life of the bonds.
reported as an expense in the period the bonds mature or are
retired.
9)
Which of the following is stated correctly?
Current liabilities follow non-current liabilities on the statement
of financial position under GAAP but non-current liabilities follow
current liabilities under IFRS.
IFRS does not treat debt modifications as extinguishments of
debt.
Under GAAP, bonds payable is recorded at the face amount and
any premium or discount is recorded in a separate account. Under IFRS,
bonds payable is recorded at the carrying value so no separate
premium or discount accounts are used.