| Initial measurement |
Fair value as the present value of future cash flows. |
Fair value as the present value of future cash flows. |
| Subsequent measurement |
Amortized cost, unless the fair-value option is chosen. Can choose to use either the effective interest rate or straight-line methods to amortize discounts and premiums. |
Amortized cost, unless the fair-value option is chosen because it results in more relevant information. The effective interest rate method is the only method allowed to amortize discounts and premiums. |
| Impairment and troubled debt restructurings |
Impairments are recorded by the creditor only. The debtor makes no entry since the amount is still legally owed. Troubled debt restructurings re-measure the new debt using the historic interest rate for comparability. If the difference is less than 10%, the debtor does not record an entry. Creditor records impairment. If the difference is greater than 10%, the debtor recognizes a gain, the old debt is derecognized, and the new debt recognized. |
Same as ASPE. |
| Disclosure |
Any principal portion of long-term debt due within one year of the reporting date is to be reported under current liabilities as the current portion of long-term debt. Long-term debt that is refinanced may be classified as long-term provided the refinancing is in place by the time the financial reports are issued. |
Any principal portion of long-term debt due within one year of the reporting date is to be reported under current liabilities as the current portion of long-term debt. Long-term debt that is refinanced may be classified as long-term provided the refinancing is in place by the reporting date. |
