The book value of bonds payable is also referred to as the carrying value of bonds payable. The book value of bonds payable consists of the following amounts, all of which are found in bond-related liability accounts:

• The face value of the bonds (which is a credit balance in the account Bonds Payable)


• The related unamortized discount (which is a debit balance in the contra-liability account Discount on Bonds Payable)


• The related unamortized premium (which is a credit balance in the adjunct-liability account Premium on Bonds Payable)


• The related unamortized bond issue costs (which is a debit balance in the contra-liability account Bond Issue Costs)

It important that the discount, premium, and issue costs are amortized properly up to the moment when the book value of the bonds is needed.

[Prior to 2016, U.S. companies had reported the unamortized bond issue costs as a long-term deferred asset.]

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