FASB Codification chap 6

What section of the codification describes imputation of interest? Briefly describe imputation of interest.

When a note is exchanged for property, goods, or service in a bargained transaction entered into at arm's length, there should be a general

that the rate of interest.by the parties to the transaction representsand.compensation to the supplier for the use of the related funds. That presumption, however, must not permit the form of the transaction to prevail over its economic substance and thus would not apply if interest is not.., the.interest rate is, or the stated face amount of the note is.different from the current cash sales price for the same or similar items or from the fair value of the note at the date of the transaction. The use of an interest rate that varies frominterest rates warrants evaluation of whether the face amount and the stated interest rate of a note or obligation provide reliable evidence for properly recording the exchange and subsequent related interest.