For U.S. GAAP reporters, a company can reclassify short-term debt as long-term debt if it intends to refinance or replace the debt with long-term debt or equity securities, and can demonstrate the ability to consummate the refinancing.

Question

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Under U.S. GAAP, a company can reclassify short-term debt as long-term if it intends to refinance it on a long-term basis and can demonstrate the ability to do so, typically through a firm refinancing agreement or post-balance sheet refinancing.

For US GAAP Reporters, a Company Can Reclassify Short-Term Debt as as Long-Term