Debt Issuance Cost Policy

​​Screenshot of the First Page of Debt Issuance Cost Policy

This sample policy is designed to help companies record debt issuance costs in conjunction with a successful debt financing arrangement.  

In this sample, it is the company’s policy to amortize debt issuance costs as interest expenses on a straight-line basis, over a time period consistent with the original term of the loan. The amortization of deferred debt issuance costs is reflected as interest expenses in the company’s consolidated statements of operations. If the loan instrument to which the related debt issuance costs are terminated, the debt issuance costs should be written off in full at that time. 

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