medium · Private Equity accounting-flow
Under standard GAAP accounting, how is OID treated on the income statement over the life of the debt?
- It is recorded as an extraordinary loss on the cash flow statement.
- It is amortized as non-cash interest expense.
- It is recorded as a one-time transaction expense at the time of closing.
- It is deducted directly from EBITDA as an operating expense.
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