91Ó°ÊÓ

Bonds payable is a liability account reported by the business unit to reflect the number of bonds issued by the business entity. This is reported in the non-current section of the balance sheet.

Option (d) is correct because the business entity reporting under IFRS does not reflect discounts and premiums on the balance sheet. Rather the bonds are reported at the net amount. While business entity reporting under GAAP reports discount and premium in a separate account.

1. Option (a) is incorrect because, under GAAP, the assets and liabilities are reported in the order of liquidity, i.e., most liquid followed by less liquid. Under IFRS, the reverse order is followed, i.e., less liquid first and most liquid.
2. Option (b) is incorrect because under IFRS, debt terms are modified are considered a debt extinguishment.
3. Option (c) is incorrect because the issuance cost of bonds is capitalized under GAAP, and under IFRS, it is deducted from the carrying value of the bonds.