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If Loan Covenants on Long-Term Debt Are Violated,but the Company

Question 111

Multiple Choice

If loan covenants on long-term debt are violated,but the company renegotiates the loan prior to releasing its financial statements,then under


A) ASPE the debt remains long-term,but under IFRS it gets reclassified as current liability.
B) ASPE and IFRS the debt remains long-term.
C) ASPE the debt gets reclassified as current liability,but under IFRS it remains long-term
D) ASPE and IFRS the debt gets reclassified as current liability.

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