Government Bonds
Code: 1251
👁 Views: 105
Account Information
| Financial Statement | Statement of Financial Position |
| Normal Balance | Debit |
Definition
Government debt securities held by the company as investment assets
Common Journal Entries
Purchased government bonds
Dr. Government Bonds
Cr. Bank Account
Received bond interest
Dr. Bank Account
Cr. Interest Income
Sold government bonds at a gain
Dr. Bank Account
Cr. Government Bonds
Cr. Gain on Investment Sale
Impairment of government bonds
Dr. Impairment Loss
Cr. Government Bonds
📐 IFRS vs US GAAP Accounting Treatment
IFRS
IFRS 9
Financial Instruments
US GAAP
ASC 320
Investments - Debt Securities
❓ Frequently Asked Questions
Q: What are government bonds?
A: Debt securities issued by the government, considered low-risk investments, yielding periodic interest.