Bonds issuance costs

Can someone explain difference in accounting of issuance costs under IFRS and USGAAP?

IFRS: Bond proceeds are lowered by the respective issuance costs, lowering the liability on the BS and with full impact on the income statment at the date of issuance.

US-GAAP: Isuance costs are capitalized and amortized over the lifetime of the bond. At the date of issuance there is no impact on the income statement.

Regards, Oscar

More specifically, they’re shown as an asset (prepaid expense), not a contra-liability.

Oh alright! Thx guys

My pleasure.

Just finished a mock from 2015 and just wanted to check whether this is still true (since i read something that i interpret as contradictory).

Background: In on off the mock exam it was stated that debt issuance cost “are included in the measurement of the bond liability” under IFRS, thus lowering the liability on the BS. And GAAP capitalize the issuance cost and then amortized it (according to a post in this thread).

My question: Is this still valid? Or have I misinterpret it?

Why I am unsure:"Prior to the issuance of the standard, debt issuance costs were required to be presented in the balance sheet as a deferred charge (i.e., an asset). This presentation differed from the presentation for a debt discount, which is a direct adjustment to the carrying value of the debt (i.e., a contra liability). The new standard requires that all costs incurred to issue debt be presented in the balance sheet as a direct deduction from the carrying value of the debt, aligning the U.S. GAAP presentation with IFRS." (PWC, IFRS and US GAAP: Similiarities and Differences, September 2015)