# ASC 470-10-45: Debt — Overall — 45 Other Presentation Matters Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/470/10/#45-other-presentation-matters) Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-10T00:30:33.212Z to 2026-09-10T00:30:33.212Z Record version: sha256:8a0f9bdbdd67c9ccc915286c598665ac807f29ba1d020ce788f4748f31885afb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 470-10-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/470/10/#45-other-presentation-matters) SEC content: no #### Classification of Debt That Includes Covenants ##### [470-10-45-1](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:33.212Z to 2026-09-10T00:30:33.212Z Record version: sha256:8e25756b836659db06df286bd55a9022880f1b8c0bb745cd63cec04e461b708b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Some long-term loans require compliance with certain covenants that must be met on a quarterly or semiannual basis. If a covenant violation occurs that would otherwise give the lender the right to call the debt, a lender may waive its call right arising from the current violation for a period greater than one year while retaining future covenant requirements. Unless facts and circumstances indicate otherwise, the borrower shall classify the obligation as noncurrent, unless both of the following conditions exist: 1. a A covenant violation that gives the lender the right to call the debt has occurred at the balance sheet date or would have occurred absent a loan modification. 2. b It is probable that the borrower will not be able to cure the default (comply with the covenant) at measurement dates that are within the next 12 months. See Example 1 (paragraph [470-10-55-2](https://asc.understandingaccounting.org/asc/470/10/#470-10-55-2)) for an illustration of this classification guidance. #### Subjective Acceleration Clauses and Debt Classification ##### [470-10-45-2](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:33.212Z to 2026-09-10T00:30:33.212Z Record version: sha256:3400a220bab21cb06b9b03f5ef2c3e3c64353554ad6c2274bd142fa8f4cd1046 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In some situations, the circumstances (for example, recurring losses or liquidity problems) would indicate that long-term debt subject to a [subjective acceleration clause](https://asc.understandingaccounting.org/glossary/s/#subjective-acceleration-clause "A subjective acceleration clause is a provision in a debt agreement that states that the creditor may accelerate the scheduled maturities of the obligation under conditions that are not objectively determinable (for example, if the debtor fails to maintain satisfactory operations or if a material adverse change occurs).") should be classified as a current liability. Other situations would indicate only disclosure of the existence of such clauses. Neither reclassification nor disclosure would be required if the likelihood of the acceleration of the due date were remote, such as if the lender historically has not accelerated due dates of loans containing similar clauses and the financial condition of the borrower is strong and its prospects are bright. #### Classification of Revolving Credit Agreements Subject to Lock-Box Arrangements and Subjective Acceleration Clauses ##### [470-10-45-3](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:33.212Z to 2026-09-10T00:30:33.212Z Record version: sha256:ea2ee386c628ed17a9e8e2de58a6691cc31d1bf851c60d8e23e7bb054f98234a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This guidance does not apply to lock-box arrangements that are maintained at the discretion of the borrower. ##### [470-10-45-4](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:33.212Z to 2026-09-10T00:30:33.212Z Record version: sha256:34dac90fe206bb406e1b407047627e29cd028fcb5743fa985c4c45fb1fab638f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Borrowings outstanding under certain revolving credit agreements are considered long-term debt because the borrowings are due at the end of a specified period (for example, 3 years) rather than when short-term notes roll over (for example, every 90 days). Borrowings may be collateralized, but the only note is the overall note signed at the agreement's inception. Some agreements require that the borrower maintain a [lock-box arrangement](https://asc.understandingaccounting.org/glossary/l/#lock-box-arrangement "An arrangement with a lender whereby the borrower's customers are required to remit payments directly to the lender and amounts received are applied to reduce the debt outstanding. A lock-box arrangement refers to any situation in which the borrower does not have the ability to avoid using working capital to repay the amounts outstanding. That is, the contractual provisions of a loan arrangement require that, in the ordinary course of business and without another event occurring, the cash receipts of a debtor are used to repay the existing obligation."). If borrowings outstanding under the agreement are considered [long-term obligations](https://asc.understandingaccounting.org/glossary/l/#long-term-obligations "Long-term obligations are those scheduled to mature beyond one year (or the operating cycle, if applicable) from the date of an entity's balance sheet."), the effect of a subjective acceleration clause on balance sheet classification is determined based on the criteria in paragraph [470-10-45-2](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-2). If borrowings outstanding are considered short-term obligations, and the borrower intends to refinance the obligation on a long-term basis, paragraph [470-10-45-13](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-13) applies and the debt shall be classified as a current liability because of the existence of the subjective acceleration clause. ##### [470-10-45-5](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:33.212Z to 2026-09-10T00:30:33.212Z Record version: sha256:5d7668617be9289971fecdde1d551c545b807672b6c9af111d086fc10940418b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Borrowings outstanding under a revolving credit agreement that includes both a subjective acceleration clause and a requirement to maintain a lock-box arrangement shall be considered short-term obligations. Accordingly, because of the subjective acceleration clause, the debt shall be classified as a current liability unless the conditions in paragraph [470-10-45-14](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-14) are met based on an agreement, other than the revolving credit agreement, to refinance the obligation after the balance sheet date on a long-term basis. ##### [470-10-45-5A](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-5A) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:33.212Z to 2026-09-10T00:30:33.212Z Record version: sha256:153628d96ca0d3a1ddfd4413e6ae920ba7914c50699be504b43271fda11e17cf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The term _lock-box arrangement_ as used in this guidance refers to any situation in which the borrower does not have the ability to avoid using working capital to repay the amounts outstanding. That is, if the contractual provisions of a loan arrangement require that, in the ordinary course of business and without another event occurring, the cash receipts of a debtor be used to repay the existing obligation, the credit agreement shall be considered a short-term obligation. ##### [470-10-45-6](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:33.212Z to 2026-09-10T00:30:33.212Z Record version: sha256:a301912024c8f81c7582659e04eac42c22f31568077e659e34f0840b1903bc18 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Borrowings outstanding under a revolving credit agreement that includes both a subjective acceleration clause and a requirement to maintain a [springing lock-box arrangement](https://asc.understandingaccounting.org/glossary/s/#springing-lock-box-arrangement "Some borrowings outstanding under a revolving credit agreement include both a subjective acceleration clause and a requirement to maintain a springing lock-box arrangement, whereby remittances from the borrower's customers are forwarded to the debtor's general bank account and do not reduce the debt outstanding until and unless the lender exercises the subjective acceleration clause.") shall be considered long-term obligations since the remittances do not automatically reduce the debt outstanding without another event occurring. The effect of the agreement's subjective acceleration clause shall be determined based on the provisions of paragraph [470-10-45-2](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-2). #### Classification of Increasing-Rate Debt ##### [470-10-45-7](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:33.212Z to 2026-09-10T00:30:33.212Z Record version: sha256:ec851d034f6389338a634cab620f4f354089355e045810875a1f4a56ae979ea1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Classification of increasing-rate debt as current or noncurrent would reflect the borrower's anticipated source of repayment that is, current assets or a new short-term debt borrowing versus a long-term refinancing agreement that meets the requirements of this Subtopic and need not be consistent with the time frame used to determine periodic interest cost. ##### [470-10-45-8](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:33.212Z to 2026-09-10T00:30:33.212Z Record version: sha256:8ca6371443fbae7d698248fb63ead8d591ae7df659ffdf717ef148b87c5c4975 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the debt is paid at par before its estimated maturity, any excess interest accrued shall be an adjustment of interest expense. #### Due on Demand Loan Arrangements ##### [470-10-45-9](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-9) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:33.212Z to 2026-09-10T00:30:33.212Z Record version: sha256:245e5e64ca906450cbafe13db5e09e2cead2b5f75df8ac1993986b5886b2e39e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Loan agreements may specify the debtor's repayment terms but also enable the creditor, at his discretion, to demand payment at any time. Those loan arrangements may have wording such as either of the following: 1. a "The term note shall mature in monthly installments as set forth therein or on demand, whichever is earlier." 2. b "Principal and interest shall be due on demand, or if no demand is made, in quarterly installments beginning on...." ##### [470-10-45-10](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-10) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:33.212Z to 2026-09-10T00:30:33.212Z Record version: sha256:f9d7edef9b9e0ff812b9f816dee5f2d7c99f1280448c1c80acb5e30631a5ae2a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The current liability classification shall include obligations that, by their terms, are due on demand or will be due on demand within one year (or [operating cycle](https://asc.understandingaccounting.org/glossary/o/#operating-cycle "The average time intervening between the acquisition of materials or services and the final cash realization constitutes an operating cycle."), if longer) from the balance sheet date, even though liquidation may not be expected within that period. The demand provision is not a subjective acceleration clause as discussed in paragraph [470-10-45-2](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-2). #### Callable Debt ##### [470-10-45-11](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-11) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:33.212Z to 2026-09-10T00:30:33.212Z Record version: sha256:378256a01b8cac819cde6ecd1b9f55bd73dc1be64b61e0ae06a84fc6b3abe70b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Current liabilities shall include long-term obligations that are or will be callable by the creditor either because the debtor's [violation of a provision](https://asc.understandingaccounting.org/glossary/v/#violation-of-a-provision "The failure to meet a condition in a debt agreement or a breach of a provision in the agreement for which compliance is objectively determinable, whether or not a grace period is allowed or the creditor is required to give notice of its intention to demand repayment.") of the debt agreement at the balance sheet date makes the [obligation callable](https://asc.understandingaccounting.org/glossary/o/#callable-obligation "An obligation is callable at a given date if the creditor has the right at that date to demand, or to give notice of its intention to demand, repayment of the obligation owed to it by the debtor.") or because the violation, if not cured within a specified grace period, will make the obligation callable. Accordingly, such callable obligations shall be classified as current liabilities unless either of the following conditions is met: 1. a The creditor has waived or subsequently lost (for example, the debtor has cured the violation after the balance sheet date and the obligation is not callable at the time the financial statements are issued or are available to be issued \[as discussed in Section 855-10-25\]) the right to demand repayment for more than one year (or operating cycle, if longer) from the balance sheet date. If the obligation is callable because of violations of certain provisions of the debt agreement, the creditor needs to waive its right with regard only to those violations. 2. b For long-term obligations containing a grace period within which the debtor may cure the violation, it is [probable](https://asc.understandingaccounting.org/glossary/p/#probable "The future event or events are likely to occur.") that the violation will be cured within that period, thus preventing the obligation from becoming callable. ##### [470-10-45-12](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-12) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:33.212Z to 2026-09-10T00:30:33.212Z Record version: sha256:68347ba81a82894fef0a47a492aeb072854a1cc740d4493765a59877f0380a3d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Drawing a distinction between significant violations of critical conditions and technical violations is not practicable. A violation that a debtor considers to be technical may be considered critical by the creditor. Furthermore, a creditor may choose to use a technical violation as a means to withdraw from its lending relationship with the debtor. If the violation is considered insignificant by the creditor, then the debtor should be able to obtain a waiver as discussed in the preceding paragraph. #### Short-Term Obligations Expected to Be Refinanced ##### [470-10-45-12A](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-12A) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:33.212Z to 2026-09-10T00:30:33.212Z Record version: sha256:c87270ea387b25f49d91dfbdcb7435cbcebdd3b4ba6aa6b64fe3ad7a60c6e84c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Some short-term obligations are expected to be refinanced on a long-term basis and, therefore, are not expected to require the use of working capital during the ensuing fiscal year. Examples include commercial paper, construction loans, and the currently maturing portion of long-term debt. ##### [470-10-45-12B](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-12B) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:33.212Z to 2026-09-10T00:30:33.212Z Record version: sha256:7dc27367d940405335b83115ad0ddabd3c72a5911929610857806703614dc65e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Refinancing a short-term obligation on a long-term basis means either replacing it with a long-term obligation or with equity securities or renewing, extending, or replacing it with short-term obligations for an uninterrupted period extending beyond one year (or the operating cycle, if applicable) from the date of an entity's balance sheet. ##### [470-10-45-13](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-13) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:33.212Z to 2026-09-10T00:30:33.212Z Record version: sha256:6c11c7220c8b9d3403c0fcd550298a479e5551665233aff04c7c7911d64eaf42 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Short-term obligations arising from transactions in the normal course of business that are due in customary terms shall be classified as current liabilities. A short-term obligation shall be excluded from current liabilities only if the conditions in the following paragraph are met. Funds obtained on a long-term basis before the balance sheet date would be excluded from current assets if the obligation to be liquidated is excluded from current liabilities. #### Intent and Ability to Refinance on a Long-Term Basis ##### [470-10-45-14](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-14) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:33.212Z to 2026-09-10T00:30:33.212Z Record version: sha256:d0e43cb19ecfaca132f10770df0c1a7917a91c244916dda0ee02f8c69e8936b6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A short-term obligation shall be excluded from current liabilities if the entity intends to refinance the obligation on a long-term basis (see paragraph [470-10-45-12B](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-12B)) and the intent to refinance the short-term obligation on a long-term basis is supported by an ability to consummate the refinancing demonstrated in either of the following ways: 1. a Post-balance-sheet-date issuance of a long-term obligation or equity securities. After the date of an entity's balance sheet but before that balance sheet is issued or is available to be issued (as discussed in Section 855-10-25), a long-term obligation or equity securities have been issued for the purpose of refinancing the short-term obligation on a long-term basis. If equity securities have been issued, the short-term obligation, although excluded from current liabilities, shall not be included in owners' equity. 2. b Financing agreement. Before the balance sheet is issued or is available to be issued (as discussed in Section 855-10-25), the entity has entered into a financing agreement that clearly permits the entity to refinance the short-term obligation on a long-term basis on terms that are readily determinable, and all of the following conditions are met: 1. 1 The agreement does not expire within one year (or operating cycle) from the date of the entity's balance sheet and during that period the agreement is not cancelable by the lender or the prospective lender or investor (and obligations incurred under the agreement are not callable during that period) except for violation of a provision with which compliance is objectively determinable or measurable. For purposes of this Subtopic, violation of a provision means failure to meet a condition set forth in the agreement or breach or violation of a provision such as a restrictive covenant, representation, or warranty, whether or not a grace period is allowed or the lender is required to give notice. Financing agreements cancelable for violation of a provision that can be evaluated differently by the parties to the agreement (such as a material adverse change or failure to maintain satisfactory operations) do not comply with this condition. 2. 2 No violation of any provision in the financing agreement exists at the balance sheet date and no available information indicates that a violation has occurred thereafter but before the balance sheet is issued or is available to be issued (as discussed in Section 855-10-25), or, if one exists at the balance sheet date or has occurred thereafter, a waiver has been obtained. 3. 3 The lender or the prospective lender or investor with which the entity has entered into the financing agreement is expected to be financially capable of honoring the agreement. ##### [470-10-45-15](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-15) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:33.212Z to 2026-09-10T00:30:33.212Z Record version: sha256:138ce12888b0b64010cbd0207f78de1d799025a55652537f4b4085dff7bed960 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Repayment of a short-term obligation before funds are obtained through a long-term refinancing requires the use of current assets. Therefore, if a short-term obligation is repaid after the balance sheet date and subsequently a long-term obligation or equity securities are issued whose proceeds are used to replenish current assets before the balance sheet is issued or is available to be issued (as discussed in Section 855-10-25), the short-term obligation shall not be excluded from current liabilities at the balance sheet date. See Example 5 (paragraph [470-10-55-33](https://asc.understandingaccounting.org/asc/470/10/#470-10-55-33)) for an illustration of this guidance. ##### [470-10-45-16](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-16) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:33.212Z to 2026-09-10T00:30:33.212Z Record version: sha256:a5d50b0314af7fda81e10af50689f2340055b2e80e99c4ef6bc6d8f29ca0f0fc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an entity's ability to consummate an intended refinancing of a short-term obligation on a long-term basis is demonstrated by post-balance-sheet-date issuance of a long-term obligation or equity securities (see paragraph [470-10-45-14(a)](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-14)), the amount of the short-term obligation to be excluded from current liabilities shall not exceed the proceeds of the new long-term obligation or the equity securities issued. ##### [470-10-45-17](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-17) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:33.212Z to 2026-09-10T00:30:33.212Z Record version: sha256:05cdc5dff50800c138158f4e5244855e43506d50d6bfd13164674f355e82865a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If ability to refinance is demonstrated by the existence of a financing agreement (see paragraph [470-10-45-14(b)](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-14)), the amount of the short-term obligation to be excluded from current liabilities shall be reduced to the amount available for refinancing under the agreement if the amount available is less than the amount of the short-term obligation. ##### [470-10-45-18](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-18) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:33.212Z to 2026-09-10T00:30:33.212Z Record version: sha256:e3098234c7be5df2e7d812d060463615ec3e6d75868002136c34741549860a2a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The amount to be excluded shall be reduced further if information (such as restrictions in other agreements or restrictions as to transferability of funds) indicates that funds obtainable under the agreement will not be available to liquidate the short-term obligation. ##### [470-10-45-19](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-19) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:33.212Z to 2026-09-10T00:30:33.212Z Record version: sha256:0c9ab91b192cc8db43673d1568bb075c1ada44b29bd456d771ecb8cfa2d08270 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Further, if amounts that could be obtained under the financing agreement fluctuate (for example, in relation to the entity's needs, in proportion to the value of collateral, or in accordance with other terms of the agreement), the amount to be excluded from current liabilities shall be limited to a reasonable estimate of the minimum amount expected to be available at any date from the scheduled maturity of the short-term obligation to the end of the fiscal year (or operating cycle). If no reasonable estimate can be made, the entire outstanding short-term obligation shall be included in current liabilities. ##### [470-10-45-20](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-20) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:33.212Z to 2026-09-10T00:30:33.212Z Record version: sha256:b93862cfbbf87f615f058efa029ae07f431d08495787e997c5b43721433201fa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The entity may intend to seek an alternative source of financing rather than to exercise its rights under the existing agreement when the short-term obligation becomes due. The entity must intend to exercise its rights under the existing agreement, however, if that other source does not become available. The intent to exercise may not be present if the terms of the agreement contain conditions or permit the prospective lender or investor to establish conditions, such as interest rates or collateral requirements, that are unreasonable to the entity. #### Transactions after the Balance Sheet Date ##### [470-10-45-21](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-21) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:33.212Z to 2026-09-10T00:30:33.212Z Record version: sha256:825929513f563d48cb6b93b0b507745480712afff115a996020880973067f700 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Replacement of a short-term obligation with another short-term obligation after the date of the balance sheet but before the balance sheet is issued or is available to be issued (as discussed in Section 855-10-25) is not, by itself, sufficient to demonstrate an entity's ability to refinance the short-term obligation on a long-term basis. If, for example, the replacement is made under the terms of a revolving credit agreement that provides for renewal or extension of the short-term obligation for an uninterrupted period extending beyond one year (or operating cycle) from the date of the balance sheet, the revolving credit agreement must meet the conditions in paragraph [470-10-45-14(b)](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-14) to justify excluding the short-term obligation from current liabilities. Similarly, if the replacement is a rollover of commercial paper accompanied by a standby credit agreement, the standby agreement must meet the conditions in that paragraph to justify excluding the short-term obligation from current liabilities.