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 or equity securities,and can demonstrate the ability to consummate the refinancing.

Question

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According to U.S. GAAP, a company can reclassify short-term debt as long-term debt if it intends to refinance or replace the debt with long-term or equity securities, and can demonstrate the ability to consummate the refinancing. This is allowed under Accounting Standards Codification (ASC) 470-10-45-9.

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