Interest Method and Effective Interest Rates
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Description
You've researched how to account for a transaction, and it says to use the "interest method." Feeling like you've now got more questions than answers? While the interest method can seem like a monumental risk, we break it down for you in this interest method CPE-eligible, eLearning course (0.5 CPE)! We explore the definition of the interest method, as explained in ASC 835. After that, the course explains where it is commonly used in U.S. GAAP. Finally, it explains how the method works.
Topics covered in this interest method CPE course include:
- Overview of the interest method
- Where the interest method is used
- Calculating the effective interest rate
- Example: Mortgage loan receivable
- Example: Debt security investment
This course is great for any accountant or auditor looking for a reminder of how to apply the interest method or determine the effective interest rate! Its easy to understand and full of practical insights. Hoping for a step-by-step example? You're in luck! We included two examples in this interest method CPE course so you can truly understand how to calculate the effective rate and apply the interest method in practice. And, with GAAP Dynamics, you know it will be fun!
Interested in group discounts for your team? Contact us to learn more.
This course is included in the following collections:
Learning Objective
By the end of this course, you should be able to:
- Recall the principles and concepts to be applied when using the interest method
Additional Information
| Last Updated | 05/01/2026 |
|---|---|
| CPE Credit | 0.5 |
| Field of Study | Accounting |
| Instructional Delivery Method | QAS Self Study |
| Knowledge Level | Overview |
| Prerequisites | None |
| Advanced Preparation | None |
| Expiration | This course, collection, or subscription expires one year from the date of purchase. The post-course assessment for each course must be satisfactorily completed, as evidenced by a passing grade of at least 70%, by the expiration date to be awarded any qualifying continuing professional education (CPE) credit. |
| Refund or Cancellation Policy | For more information regarding refunds, concerns, and program cancellation policies, please contact the GAAP Dynamics Support Team via email at support@gaapdynamics.com or call (804) 897-0608. |
$70
0h 30m
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