Читать книгу Annual Accounting and Auditing Workshop - Kurt Oestriecher - Страница 74

This update was issued to amend the amortization period for certain purchased callable debt securities held at a premium. Under current GAAP, entities generally amortize the premium as an adjustment of yield over the contractual life of the instrument. Therefore, upon the exercise of a call on a callable debt security held at a premium, the unamortized premium is recorded as a loss in earnings. In addition, there was diversity in practice in the amortization period of premiums of callable debt securities and how the potential for a call was factored into current impairment assessments.