When do we adjust book/market value of bond?

Subsequent interest rate change after issuance does not affect book value of a bond but will affect its market value and a firm will need to report this market value in the footnote. Is this correct? I also noted something similar on my notes saying “Market Value of outstanding debt is typically not included in disclosure”. Anyone can clarify? Thanks.

revenant Wrote: ------------------------------------------------------- > Subsequent interest rate change after issuance > does not affect book value of a bond but will > affect its market value and a firm will need to > report this market value in the footnote. This is the correct stmt as far as I am aware, Gains and losses are realized when the bond MATURES (else reported in the footnotes) on the Balance sheet under ownder`s equity and Income stmt > I also noted something similar on my notes saying > “Market Value of outstanding debt is typically not > included in disclosure”. This might be the case for Held for trading securities…

As per my understanding: IFRS requires disclosure of mkt value of bond liabilities. FASB 107 tries to harmonize with IFRS and requires same thing.

Forgot to confirm the obvious in previous posting: I believe that both standards say you book the bonds with amortized cost, not market value (IAS 39 and FASB 107)

Thanks for the replies. So, book values are amortized cost while market value (due to interest rate change) are stated in the footnotes? Anyone has a different understanding?