Non-Cash Interest

Non-Cash Interest Expense (v2660.03) calculates non-cash portions of interest expense on scheduled debt accounts. Non-cash interest typically takes the form of zero coupon (deep discount) debt or PIKs (Payments in Kind). In history, enter Non-Cash Interest as a dollar amount. In forecast, enter this item as a rate (using the Percent of Prior Period Account forecast method) or as a default currency amount, depending on the forecast method you choose.

Amounts entered into this account reflect as part of total interest expense and accrue to the related scheduled debt account, Long-Term Debt: Scheduled (v2660.00) in the forecast periods.

Note:

If the forecast methods Percent of Another Account or Percent of Average Account forecast Non-Cash Interest Expense, a circular reference occurs when calculating because the current period-ending balance of L-T Debt: Scheduled is calculated based on Non-Cash Interest Expense.