ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 268

reported as an expense in the period the bonds mature or
are retired.

9)

Which of the following is stated correctly?

Current liabilities follow non-current liabilities on the
statement of financial position under GAAP but non-current
liabilities follow current liabilities under IFRS.

IFRS does not treat debt modifications as
extinguishments of debt.

Under GAAP, bonds payable is recorded at the face
amount and any premium or discount is recorded in a separate
account. Under IFRS, bonds payable is recorded at the carrying
value so no separate premium or discount accounts are used.