What are the expenses incurred during the bond issuance process known as?

The expenses incurred during the bond issuance process are referred to as debt issuance costs. These costs typically encompass a variety of fees and expenditures associated with preparing, marketing, and selling the bonds. They may include legal fees, underwriting fees, printing costs, and credit ratings, among other related expenses. Recognizing these costs as debt issuance costs is essential for accurate financial reporting and compliance with accounting standards.

In the context of financial statements, these costs are typically capitalized and amortized over the life of the bond, reflecting how they are connected to the borrowing process itself. Proper classification and treatment of these costs ensure transparency and integrity in municipal finance, allowing stakeholders to evaluate the true cost of borrowing effectively.