As best I understand it, a corporation may borrow money (e.g., issue a $1 million bond), and the price of that bond could subsequently fall in price in secondary trading on a bond exchange or over the counter. It might fall from an initial price of 100 (i.e., par) to, for example, 60. This might result from doubts about the ability of the corporation to service the debt or other factors in the marketplace. In that case the corporation pursuant to FASB 159 may book $400 thousand in revenue (i.e., $1,000,000 x 0.4).
I wish to compile a list of those publicly traded corporations that are currently making use of this feature of FASB 159. I am particularly interested in financial corporations. I was told to check 10-Q filings of publicly traded corporations and to use the most recent filing of Citicorp as an example. However, I do not see any reference to this accounting technique in Citicorp's filing.
You may wish to consult:http://www.citigroup.com/citi/fin/qer.htm
