This chapter describes how an entity applies the interest method in ASC 835-30 (see Section 6.2) and the fair value option in ASC 825-10 (see Section 6.3) to the subsequent accounting for debt. The evaluation of whether features embedded in debt must be separated and accounted for as derivatives under ASC 815-15 is addressed in Chapter 8. Chapter 7 discusses specialized accounting models that apply to certain types of debt.
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This publication provides comprehensive guidance; however, it does not address all possible fact patterns, and the guidance is subject to change. Consult a Deloitte & Touche LLP professional regarding your specific issues and questions.