1.0 AICPA® Mastery Video Series: Long-Term Liabilities (Bonds) | Troubled Debt | Corporate Debt Securities (AFS)

This session, led by expert CPA educator Jerry Pecaro, provides a comprehensive review of long-term liabilities, with a focus on bond accounting, troubled debt restructuring, and corporate debt investments classified as Available-for-Sale (AFS) under U.S. GAAP. Designed specifically for FAR exam candidates, the lecture includes step-by-step walk-throughs of bond premium and discount amortization, effective interest method, journal entries for extinguishment of debt, impairment of AFS securities, and TDRs. Real-world exam-style examples and conceptual frameworks are used to reinforce high-yield areas on the CPA exam, making this a critical review for mastering debt-related topics.

Topics Covered:

• Bond issuance and discount/premium amortization
• Effective interest method
• Extinguishment of debt before and at maturity
• Troubled Debt Restructuring (TDR) – settlements and modifications
• Impairment of AFS securities
• Debt securities accounting and OCI treatment