MGMT 30A Lecture Notes - Lecture 18: Operating Lease
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Document Summary
Management 30a lecture 18: reporting & analyzing liabilities ctn. : the right to receive an amount of money now is: time value of money concept , the discount rate worth more than the right to receive the same amount on the future. Reflects time value of money, or how much interest you would want to be paid for giving up the use of your money for a period. : the current value of an amount to be received in the future. As market interest rates decline, bond prices increase, when a bond is issued, if the market interest rate is below the contractual rate, the bond price is higher than the face value. Amount of interest expense reported each period will exceed the contractual. Increases the amount of interest expense reported each period amount paid. As the discount is amortized, its balance declines.
