Two methods of debt premium or discount amortization are considered GAAP: straight-line and effective interest. Under the straight-line method, the premium or discount is divided by the number of periods remaining in the life of the debt issue.
Two methods of debt premium or discount amortization are consideredGAAP: straight-line and effective interest. Under the straight-line method, the premium or discount is divided by the number of periods remaining in the life of the debt issue.