Long-term debt called back by a company before the maturity date. This may occur when the interest rate on the debt exceeds the current prevailing interest rate. The difference between the cash paid and the carrying value of the bond is treated as an ordinary loss or gain.
Early Extinguishment of Debt
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 | Retirement of Debt (in accounting) |
| Loss (in accounting) |
| Extraordinary Item (in accounting) |
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Mentioned in
- Retirement of Debt (in accounting)
- Loss (in accounting)
- Extraordinary Item (in accounting)
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- Accounting Principles Board
