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What Is A Amortized Bond? |
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Answer» An amortized BOND is a financial certificate that has been reduced in value for records on ACCOUNTING statements. An amortized bond is TREATED as an asset, with the discount amount being amortized to interest expense over the life of the bond. If a bond is issued at a discount - that is, offered for sale below its PAR (face value) - the discount must either be treated as an expense or amortized as an asset. Amortization is an accounting method that gradually and SYSTEMATICALLY. An amortized bond is a financial certificate that has been reduced in value for records on accounting statements. An amortized bond is treated as an asset, with the discount amount being amortized to interest expense over the life of the bond. If a bond is issued at a discount - that is, offered for sale below its par (face value) - the discount must either be treated as an expense or amortized as an asset. Amortization is an accounting method that gradually and systematically. |
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