When will the deferred financing cost be derecognized?

[however]

Hi,

A Company has existing loans and capitalized related deferred financing cost as of December 31, 2012.

However, the Company entered into a refinancing agreement in the last week of December 2012 but the monies related to the refinancing will happen in January 2013.

I would like to know if it's OK to write-off the deferred financing cost related to the old debt in 2013.

Do you have any thoughts on the treatment in IFRS and US GAAP? Thanks!

 

[bklynboy]

Under US GAAP you may want to look at FAS 140 (not sure what the new codification topic is) which discusses debt restructurings. My opinion is the refinance is not considered an "extinguishment" of the liability and the Company continues amortizing costs related to the previous debt and charge to expense any debt restructuring direct costs of the refinance.