Deferred financing costs or debt issuance costs is an accounting concept meaning costs associated with issuing debt (loans and bonds), such as various fees and commissions paid to investment banks, law firms, auditors, regulators, and so on. Since these payments do not generate future benefits, they are treated as a contra debt account. The costs are capitalized, reflected in the balance sheet as a contra long-term liability, and amortized using the effective interest method or over the finite life of the underlying debt instrument, if below de minimus.[1] The unamortized amounts are included in the long-term debt, as a reduction of the total debt (hence contra debt) in the accompanying consolidated balance sheets.[2][3] Early debt repayment results in expensing these costs.
^Deferred financing costs
^"DEFERRED FINANCING COSTS" (PDF). Archived from the original (PDF) on 2011-07-04. Retrieved 2010-08-30.
^Capitalizing and amortizing debt issuance costs
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using the straight-line method. Deferred Tax Deferred Acquisition Costs Deferredfinancing costs "DEFERREDFINANCING COSTS" (PDF). Archived from the original...
Examples of deferred compensation include pensions, retirement plans, and employee stock options. The primary benefit of most deferred compensation is...
example with monthly payments (a contract with deferred payment being known as bai-muajjal). Murabaha financing is similar to a rent-to-own arrangement in...
Temporary difference do give rise to potential deferred tax, but the rules on whether the deferred asset or liability is actually recognised can vary...
allocated overhead. The costs of those goods which are not yet sold are deferred as costs of inventory until the inventory is sold or written down in value...
MyHome Assistance Program provides down payment and closing cost assistance through a deferred payment junior loan that does not have to be repaid until...
taxes (NOPLAT) refers to after-tax EBIT adjusted for deferred taxes, or NOPAT + net increase in deferred taxes. It represents the profits generated from a...
mezzanine financing. Mezzanine capital is often a more expensive financing source for a company than secured debt or senior debt. The higher cost of capital...
Deferred Action for Childhood Arrivals (DACA) is a United States immigration policy. It allows some individuals who, on June 15, 2012, were physically...
Islamic banking, Islamic finance (Arabic: مصرفية إسلامية masrifiyya 'islamia), or Sharia-compliant finance is banking or financing activity that complies...
Short term financing. Identify the appropriate source of financing, given the cash conversion cycle: the inventory is ideally financed by credit granted...
being considered a part of financing activities. IAS 7 allows interest paid to be included in operating activities or financing activities. US GAAP requires...
The historical cost of an asset at the time it is acquired or created is the value of the costs incurred in acquiring or creating the asset, comprising...
corporate bonds Liabilities and assets for current tax Deferred tax liabilities and deferred tax assets Unearned revenue for services paid for by customers...
Short-term financing. Identify the appropriate source of financing, given the cash conversion cycle: the inventory is ideally financed by credit granted...
Construction in progress Consumption of fixed capital Cost segregation study Deferredfinancing costs Deferred tax Depletion (accounting) DIRTI 5 Expense John...
have been criticized for their high commissions, contingent deferred sale charges, tax deferred growth, high taxes on profits, and high annual costs. Sales...
separation theorem Sources of financing Securities Debt Initial public offering Capital structure Cost of capital Weighted average cost of capital Modigliani–Miller...
a designated period. Deferment or forbearance will prevent the loan from going into default, but may increase the overall cost of the loan. Students...
This document, which could be over 130 pages long, is used to secure financing for and lead to pre-production and production of the film. Multiple drafts...
P Q R S T U V W X Y Z See also References 401(a) Retirement Plan A tax-deferred retirement savings plan defined by subsection 401(a) of the Internal Revenue...
organizations may also fund pensions. Occupational pensions are a form of deferred compensation, usually advantageous to employee and employer for tax reasons...
investor subtracts the tax deferred part of a distribution from their cost base (and reduced cost base). It is called tax deferred because the investor pays...
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