[wissam]

If payments for a lease or bond interest are done annually at the beginning of the year, and a question asks for the carrying value of the bonds or the lease obligation on 6/30 when the company prepares semiannual statement. Should I take half a year amortization and apply it the CV? or does the amortization only happen when the payments are made?

[WICPA06]

You should take half a year of amortization for the reporting period. Even though you haven't paid the obligation, you have still incurred the expense through those 6 months. If you didn't recognize the amortization for those 6 months, your asset or obligation would be overstated or understated for the 6 month reporting period.

BEC - 77 (lost credit), 4/5/13
AUD - 83
REG - 77
FAR - 73, 74, 80! One more to go!!

[wissam]

I don't know, I'm pretty sure I saw a question about leases in the Wiley TB where amortization was not taken because no payment was made, but Becker has a question about bonds where the amortization was taken. That's why I'm confused.

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