The Effective Interest Method, Explained: How Bond Discounts and Premiums Amortize Into Interest Expense
Interest expense equals carrying value times the market rate at issuance — the gap to the coupon amortizes the discount or premium each period.
#amortization
Amortization
Amortizing intangible assets and deferred costs over their useful lives, including patents, Section 197 intangibles, and bond premiums
Cloud Implementation Costs, Explained: Which Hosting Setup Costs You Capitalize Under ASC 350-40
ASC 350-40 capitalizes only application-development costs — configuration, interfaces, testing — and expenses preliminary, training, and data-migration costs.
Common-Control Leases, Explained: How ASU 2023-01 Lets Private Companies Use Written Terms That Aren't Legally Enforceable
ASU 2023-01 lets private companies use written, even unenforceable, terms for common-control leases and amortize improvements over useful life.
Long-Lived Asset Impairment, Explained: The Two-Step Recoverability Test Under ASC 360
Impairment hits only when undiscounted cash flows fall short of carrying amount; the loss is book value minus fair value, and GAAP never reverses it.
Recurring Journal Entries, Explained: The Month-End Entries That Post Every Period
Depreciation, amortization, prepaids, and accruals post monthly so each period carries its own costs — templates plus a quarterly review keep them honest.
Utility vs. Design vs. Plant Patents: Which Patent Fits Your Invention?
Utility patents protect how an invention works for 20 years, design patents protect how it looks for 15, and plant patents cover asexually reproduced varieties.
Amortization vs. Depreciation: What Each Method Expenses, and the Loan Schedule That Confuses Everyone
Depreciation expenses tangibles minus salvage value; amortization writes off intangibles with none — and the IRS stretches acquired intangibles over 15 years.
Balloon Payments, Explained: How Partially Amortized Loans End in a Lump Sum
A balloon loan amortizes over 30 years but matures in 5 to 7, leaving most principal due at once — refinance early or fund the lump sum deliberately.
How to Account for Patent Costs: What You Capitalize, How Amortization Works, and When to Write Off a Dead Patent
Patent filing and legal fees are capitalized, not expensed — then amortized over the shorter of 20 years or useful life under Section 167.