What is Bond discount?
Also known as: discount
The difference that arises when a bond is bought for less than its face value. The company that bought it does not recognize this difference as income immediately: it stays in accounts 7210 (long-term) and 6210 (current portion) as deferred income and is transferred in instalments to account 9530 "Interest income" until the bond is redeemed. Only the buyer of the bond uses these accounts.