A	B	C	D	E	F	G	H	I	J	K	L
1		BondBeagle
2		Accounting for Non-Convertible Bond Liability Life-Cycle Events: Issuance; Interest Accruals and Payments; Issuance Costs and Discount/Premium Amortization; Retirement; Maturity.
3		BondBeagle's objective is to supplement textbooks that teach "accounting for (non-convertible) bond liabilities" in the typical intermediate-level financial accounting curriculum. BondBeagle enables the interactive creation and review of an unlimited supply of problems and annotated solutions. Your feedback regarding BondBeagle will be used to improve it for future users. Please email feedback to:
4		conheady@telfer.uottawa.ca
5		For applications that account for the life-cycle events of convertible bond liabilities (using either IFRS or U.S. GAAP) see:
6		bondterrier.com					and	bondlabrador.com
7
8		BondBeagle deals with:
9		·        Accounting by the issuers for the life-cycle events (issuance, interest accruals and payments, issuance costs and discount/premium amortization, retirement, maturity) of non-convertible bond liabilities* that can be retired by the issuer through an open-market purchase or by exercising a call option.
10		·        Issuance on or between interest payment dates.
11		·        Retirement on or between interest payment dates.
12		·        Straight-line or effective-interest-rate amortization of discount/premium.
13		* These bond liabilities are financial liabilities that are measured subsequent to initial recognition at amortized cost in accordance with IFRS 9 and ASPE 3856, and in the U.S. are treated per APB Opinion No. 21. [ASPE = Canadian Accounting Standards for Private Enterprises].
14
15		What BondBeagle does:
16		BondBeagle explains the calculation of the bond liability proceeds and provides journal entries** and supporting explanations for life-cycle events including issuance, interest payments, accounting year-ends, retirement, and maturity. With sufficient input-data BondBeagle generates an amortization table and a sensitivity analysis of the impact on the financial statements of employing the straight-line and effective interest rate methods of premium/discount amortization.
17		BondBeagle generates a time-line of the life-cycle events surrounding the issuance, retirement and maturity dates in the DATE_TABLES worksheet.
18		A textual compliation of the data entered in the INPUT worksheet by the user is generated in the TEXT worksheet. This enables the user to "reverse-engineer" the text of a problem that reflects his/her own input data.
19		**Journal entries and accompanying explanations generated:
20		1:         On the date of issuance.
21		2:         On up to a maximum of five post-issuance and pre-retirement dates (interest payment anniversary and financial year-end dates): bond interest accrual, discount/premium/issuance costs amortization, interest paid.
22		3:         On the date of retirement.
23		4:       On up to a maximum of five post-retirement and pre-maturity dates (interest payment anniversary and financial year-end dates): bond interest accrual, discount/premium/issuance costs amortization, interest paid.
24		5:         On the date of maturity.
25
26		BondBeagle does not deal with:
27		·        Issuer accounting for the life-cycle events of bonds that are convertible into common equity at the holder's option:
28		see BondTerrier at			bomode.telfer.uottawa.ca/BondTerrier
29		·        Issuer accounting for the life-cycle events of bonds that are convertible into common equity at the issuer's option:
30		see BondLabrador at			bomode.telfer.uottawa.ca/BondLabrador
31		·        Defeasance.
32		·        Serial bonds.			bomode.telfer.uottawa.ca/tdr/tdr_sheet.aspx
33		·        Troubled debt restructuring.
35
36		BondBeagle's constraints:
37		·        1, 2 or 4 interest payments per year.
38		·        Assumes straight-line amortization of bond issuance costs.
39		·        The stated (coupon) interest rate must be >=0%.
40		·        Interest payment anniversary dates occur on the first or last day of the month.
41		·        Percent of bonds retired: 0% to 100%.
42		·        Retirement or call price as a % of face value must be > 0%.
43		·        Maximum of one retirement or call event during the bond's life-cycle.
44		·        Does not consider the value to the issuer of a bond's call feature.
45		·        Number of decimal places for the present value calculations: 3, 4, 5, 6, 7 or 8.
46		·        Calculates the number of months between bond life-cycle events to the nearest whole month.
47		·        The amortization table displays a maximum of 40 interest payment periods.
48		·        The amortization table is not generated for situations where all of the following conditions exist:
49			(i) the effective interest rate method is used for bond premium/discount amortization, and
50			(ii) the effective interest rate (yield) is not provided in the INPUT worksheet, and
51			(iii) the date of issuance is between interest payment dates.
52
53		BondBeagle				Copyright (c) Brian Conheady. All Rights Reserved.
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73