Deferred financing cost
From Wikipedia, the free encyclopedia
(Redirected from Deferred financing costs)
Deferred financing costs is an accounting concept meaning costs associated with issuing debt (loans and bonds), such as various fees and commissions paid to investment banks, law firms, auditors, and so on. Since these payments generate future benefits, they are treated as an asset. The costs are capitalised, reflected in the balance sheet as an asset, and amortised over the finite life of the underlying debt instrument. Early debt repayment results in expensing these costs.
In case of issuing securities without specific maturity, such as perpetual preferred stock, financing costs are not capitalised and expensed immediately.
[edit] External links
- Obagi Medical Products Reports Third Quarter 2007 Financial Results
- Prime Group Realty Trust Reports Fourth Quarter and Year 2007 Results
- SATELITES MEXICANOS, S.A. DE C.V.
|
|||||||||||||||||
