Hey great video, I have a quick question for clarity though. How come we have to dilute and amoritize Asset write-up expenses and where would that go (income statement? Balance sheet? Cash flows?) Thank you!
Not anymore. It is treated as a debt contra item and amortized within interest expense. Here is a full breakdown we wrote about it: www.wallstreetprep.com/knowledge/debt-accounting-treatment-financing-fees/
![Financial Modeling Quick Lessons: Accretion / Dilution Model (Part 2) [UPDATED]](http://i.ytimg.com/vi/S-WKFgbHi_s/mqdefault.jpg)
Hey great video, I have a quick question for clarity though. How come we have to dilute and amoritize Asset write-up expenses and where would that go (income statement? Balance sheet? Cash flows?) Thank you!
Is the financing fee levied by the bankers still capitalized and amortized over time?
Not anymore. It is treated as a debt contra item and amortized within interest expense. Here is a full breakdown we wrote about it: www.wallstreetprep.com/knowledge/debt-accounting-treatment-financing-fees/
@@wallstreetprep thank you!