Notes:

● Short-Term Obligations - Debts scheduled to mature within one year after the date of a
company’s balance sheet or within its operating cycle, whichever is longer.
● Some short term obligations are expected to be refinanced on a long-term basis. These
short-term obligations will not require the use of working capital during the next year
(or operating cycle, if longer).
● A company can classify short-term debt expected to be refinanced as noncurrent only if
one or both of the following criteria are met as of the balance sheet date:
1. The liability is contractually due to be settled more than one year (or operating
cycle, if longer) after the balance sheet date.
2. The entity has a contractual right to defer settlement of the liability for at
least one year (or operating cycle, if longer) after the balance sheet date.
● A company therefore should not report short-term debt expected to be refinanced as
noncurrent, unless a valid contract exists to support long-term presentation.
● EXCLUDE from Current Liabilities if both has: COMPLETED REFINANCING
CONTRACT ON OR BEFORE REPORTING DATE
1. INTENTION to refinance
2. UNCONDITIONAL RIGHT to defer settlement