Government Bonds
Code: 1236
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Account Information
| Account Type | 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
International Accounting Standards
IFRS
IFRS 9
Financial Instruments
Typically classified at amortised cost if held to collect. ECL model for impairment.
US GAAP
ASC 320
Investments - Debt Securities
Held-to-maturity classification at amortised cost. Other-than-temporary impairment rules.