Montana Board of Housing, Report On Audit of Financial Statements, June 30, 1990 1990

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-15- MONTANA BOARD OF HOUSING NOTES TO COMBINED FINANCIAL STATEMENTS (Continued) June 30, 1990 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Accretion of Capital Appreciation Bonds (CAB) : CABs are reported at accreted value using the compounded value as set forth in the supplemental trust indenture, over the life of the bonds. The accreted amount is reported as inter- est expense on bonds .
Accretion of Postponed Revenue on Future Income Tax Exempt Securities Bonds (PROFITS) : PROFIT
...bonds are reported at accreted value using the com- pounded value until the bonds reach face value at which time they convert to coupon bonds as set forth in the supplemental trust indenture. The accreted amount is reported as interest expense on bonds.
Amortization of Bond Issuance Cost: Bond issuance costs, including underwriter discounts, are being amortized using the bonds outstanding method over the life of the bonds.
Bonds Payable - Net: Bonds payable are reported at net of standing, adjusted for unamortized discounts.


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