What does reacquisition price mean on the CPA exam?
Reacquisition price. What it costs to retire debt early, including any call premium. Compared to the net carrying amount to work out the gain or loss on extinguishment.
Defined against ASC 470-50-40-2.
Which CPA exam sections use reacquisition price?
Reacquisition price appears in the FAR section of the CPA exam.
Related terms
- carrying amount: What an asset or liability is currently shown at on the balance sheet: its original amount adjusted for depreciation, amortization, impairment or accrual.
- transaction price: The consideration an entity expects to be entitled to for transferring goods or services, excluding amounts collected for third parties such as sales tax.
- equity method: Used when the investor can exercise significant influence, presumed at 20% or more of the voting stock.
- held for sale: A classification for a component the entity is actively marketing and expects to sell within a year.
- impairment: Writing an asset down because its carrying amount can no longer be recovered.
- asset acquisition: Buying a group of assets that does not amount to a business.