FASB ASC Subtopic 835-30, Imputation of Interest

Subtopic 835-30 connects a note's cash flows and present value to its reported interest cost. A controlled schedule keeps face amount, issue price, discount or premium, debt issuance costs, coupon cash, effective interest, and carrying amount in separate fields.

The source does not choose a market yield or decide whether a cost qualifies. Those inputs need transaction evidence and the guidance that governs the instrument. Once the inputs are supported, the interest method explains each period's expense and movement toward the maturity amount.