August 4, 1994
TO: ACCOUNTING/TREASURERS MEMBERS NO. 23-94
INDEPENDENT ACCOUNTANTS ADV. GROUP NO. 7-94
RE: ICI WHITE PAPER ON PAYMENT-IN-KIND BONDS
__________________________________________________________
The attached paper describes the accounting, tax and operational issues related to payment-in-
kind bonds ("PIK Bonds"). The paper was developed by the Accounting Policy Subcommittee of
the Institute's Accounting/Treasurers Committee ("ATC") and was unanimously approved for
dissemination to the ICI membership by the ATC and the Independent Accountants Advisory Group.
The paper is intended to provide technical guidance to ICI members on accounting, tax, and
operational issues related to PIK Bonds. The Institute would like to recognize the contributions of
the paper's principal authors:
George C. Bowen, Oppenheimer Management Corporation
Mary C. Cremin, Capital Research & Management Company
John J. Gargana, Lord, Abbett & Company
Allen M. Goldstein, Price Waterhouse
W. Thomas, London, Massachusetts Financial Services Company
Please feel free to contact me with any questions or comments at 202/326-5851.
Gregory M. Smith
Director - Operations/
Compliance & Fund Accounting
Attachment