In Its 2013 Annual Report to Shareholders, Bare Sturns Group

question 16

Essay

In its 2013 annual report to shareholders, Bare Sturns Group Inc. disclosed the following:
On October 28, 2013, the Company issued $475,000,000 aggregate principal amount of 9-1/4% Senior Notes Due 2018 ("Senior Notes") and $618,670,000 aggregate principal amount at maturity of 10-1/4% Senior Discount Notes Due 2018 ("Senior Discount Notes" and collectively the "Notes") in a transaction not registered under the Securities Act in reliance upon an exemption from the registration requirements of the Securities Act. Gross proceeds from the offering amounted to $850,000,000. The discount on the Senior Discount Notes is being accreted under the effective interest method.
Explain the last sentence of the disclosure to clarify what accounting was necessary and why.

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Definitions:

Dialectics

A method of argument involving contrasting ideas that interact in a way to resolve differences or produce new knowledge.

Idealism

A philosophy that asserts the primacy of ideas or the spiritual as the main constituent of reality, often emphasizing the importance of mental processes in interpreting the world.

Scientific Rationalism

reflects the belief in science and empirical evidence as the primary means of understanding the world, emphasizing logic and reason over superstition or tradition.

Classic Sociologists

Classic sociologists refer to the founders and early theorists in sociology whose ideas form the foundation of sociological thought, including figures like Karl Marx, Max Weber, and Émile Durkheim.