- This topic has 4 replies, 4 voices, and was last updated Jan-186:45 pm by
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Up6
So, which is it?
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Up5
Yes A is correct.
Under GAAP, a company will capitalize the issuance costs of debt separately from the bond itself, whereas IFRS will include it as a part of the security’s book value. As such, Security Solutions Corp will need to write-down the issuing costs separately under GAAP but does not need to do so under IFRS.
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Up4
Think the correct answer is A since as per GAAP, the issuance costs are treated as an asset.
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Up2
Boo! I got it wrong. :neutral_face:
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