The FASB has issued ASU 2015-15, Interest-Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements-Amendments to SEC Paragraphs Pursuant to Staff Announcement
at June 18, 2015 EITF Meeting.
Earlier in 2015, the FASB issued ASU 2015-03 which changed the presentation of debt issuance costs by requiring that debt issuance costs be considered a direct reduction of the debt liability for presentation purposes. ASU 2015-03 does not address the presentation of debt issuance costs related to line-of-credit arrangements.
ASU 2015-15 indicates that because of this lack of guidance, the SEC would not object to an entity deferring and presenting debt issuance costs as an asset and amortizing such costs ratably over the term of the line-of-credit arrangement.
This guidance applies regardless of whether there are outstanding borrowings on the line-of-credit arrangement.
The full text of ASU 2015-15 is available by clicking here
Readers should not act upon information presented without individual professional consultation.