Learning Outcome Statements

1. Accounting for Bond Issuance, Bond Amortization, Interest Expense, and Interest Payments

a. determine the initial recognition, initial measurement and subsequent measurement of bonds;

b. describe the effective interest method and calculate interest expense, amortisation of bond discounts/premiums, and interest payments;

2. Current Market Rates and Fair Value Reporting Option

a. determine the initial recognition, initial measurement and subsequent measurement of bonds;

b. describe the effective interest method and calculate interest expense, amortisation of bond discounts/premiums, and interest payments;

3. Derecognition of Debt

c. explain the derecognition of debt;

4. Debt Covenants

d. describe the role of debt covenants in protecting creditors;

5. Presentation and Disclosure of Long-Term Debt

e. describe the financial statement presentation of and disclosures relating to debt;

6. Advantages of Leasing

f. explain motivations for leasing assets instead of purchasing them;

7. Lease Classification

g. distinguish between a finance lease and an operating lease from the perspectives of the lessor and the lessee;

8. Accounting and Reporting by the Lessee

h. determine the initial recognition, initial measurement, and subsequent measurement of finance leases;

i. compare the disclosures relating to finance and operating leases;

9. Accounting and Reporting by the Lessor

h. determine the initial recognition, initial measurement, and subsequent measurement of finance leases;

i. compare the disclosures relating to finance and operating leases;

10. Defined Contribution and Defined Benefit Pension Plans

j. compare the presentation and disclosure of defined contribution and defined benefit pension plans;

11. Leverage and Coverage Ratios

k. calculate and interpret leverage and coverage ratios.