Capítulo 14: Non Current Liabilities

Capítulo 14: Non Current Liabilities

1. BONDS PAYABLE

   • consist of an expected of resources arising from present obligations that are not payable within a year or the operating cycle
     • ISSUING BONDS
       • represents a promise to pay a sum of money at a designated maturity date
         • BONDS ISSUED AT PAR
           • • If the bonds sell for less than face value, they sell at a discount. • If the bonds sell for more than face value, they sell at a premium.
     • Valuation
       • First, the issuing company must arrange for underwriters that will help market and sell the bonds. Then, it must obtain regulatory approval of the bond issue, undergo audits, and issue a prospectus (a document that describes the features of the bond and related financial informa- Valuation of Bonds Payable tion). Finally, the company must generally have the bond certificates printed.

2. LONG-TERM NOTES PAYABLE

   • The difference between current notes payable and long-term notes payable is the maturity date.
     • NOTES ISSUED AT FACE VALUE
       • zero interest bearing notes
         • The implicit interest rate is the rate that equates the cash received with the amounts to be paid in the future.

3. SPECIAL NOTES PAYABLE

   • 1. No interest rate is stated, or 2. The stated interest rate is unreasonable, or 3. The stated face amount of the debt instrument is materially different from the cur- rent cash sales price for the same or similar items or from the current fair value of the debt instrument.

4. MORTGAGE NOTES PAYABLE

   • is a promissory note secured by a document called a mortgage that pledges title to property as security for the loan. Individuals, proprietorships, and partnerships use mortgage notes payable more frequently than do corporations.