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Deferred financing costs or debt issuance costs is an accounting concept meaning costs associated with issuing debt (loans and bonds), such as various fees and commissions paid to investment banks, law firms, auditors, regulators, and so on. Since these payments do not generate future benefits, they are treated as a contra debt account.
A deferred charge is a cost recorded in a later accounting period for its expected future benefit, or to comply with the matching principle, which matches costs with revenue. Deferred charges include costs such as those related to startup activities, obtaining long-term debt , or running major advertising campaigns.
A company's earnings before interest, taxes, depreciation, and amortization (commonly abbreviated EBITDA, [1] pronounced / ˈ iː b ɪ t d ɑː,-b ə-, ˈ ɛ-/ [2]) is a measure of a company's profitability of the operating business only, thus before any effects of indebtedness, state-mandated payments, and costs required to maintain its asset base.
Tax-deferred accounts have two main advantages over typical taxable accounts: First, they lower your annual taxable income when you contribute to them. When you add money to a tax-deferred account ...
A balance sheet is often described as a "snapshot of a company's financial condition". [1] It is the summary of each and every financial statement of an organization. Of the four basic financial statements, the balance sheet is the only statement which applies to a single point in time of a business's calendar year. [2]
Reverse mortgage: In the extreme or limiting case of the principle of negative amortization, the borrower in a loan does not need to make payments on the loan until the loan comes due; that is, all interest is capitalized, and the original principal and all interest accrued as of the due date are paid off together and at once.
Owner financing is an arrangement in which an owner or seller, rather than a bank or mortgage lender, extends financing to a buyer. This can be a viable option for buyers who don’t qualify for a ...
Deferred tax is a notional asset or liability to reflect corporate income taxation on a basis that is the same or more similar to recognition of profits than the taxation treatment. Deferred tax liabilities can arise as a result of corporate taxation treatment of capital expenditure being more rapid than the accounting depreciation treatment.