Accounting for deferred financing costs

Nature and accounting for debt issue costs 

When a company obtains a loan (e.g., from a bank) or issues bonds, some costs may be incurred. These costs include legal, accounting and underwriting fees, commissions, and so on. There are several interchangeable terms for such costs: debt issue costs, debt issuance costs, bond issuance costs, or deferred financing costs. We will use the term deferred financing costs in this article even though other terms are acceptable as well.

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