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The carrying (book)value of a bond payable is the par value of the bonds plus any discount or minus any premium.
Carrying Value
Carrying value, also known as book value, is the value of an asset as reflected in an entity's accounting records, minus any depreciation, amortization, or impairment costs.
Bond Payable
A form of long-term debt issued by corporations, governments, or other entities to investors with a promise to pay a specified sum of money at a future date.
Par Value
The face value of a bond or stock as stated by the issuing company, which may differ from its market value.
- Gaining an understanding of the accounting methods applied to bond issuance, specifically regarding discounts, premiums, and carrying value.
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Learning Objectives
- Gaining an understanding of the accounting methods applied to bond issuance, specifically regarding discounts, premiums, and carrying value.
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