# ASC 470-10: Debt — Overall Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/470/10/) 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): 2026-09-10T00:30:14.064Z to 2026-09-10T00:31:04.047Z Record version: sha256:f898f591fca07f08a38195886e12f3ba58a8ef83f6f1b68e90e2ed7985fe632c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 470-10: Debt — Overall ### Machine-generated study aids ```json { "summary": "ASC 470-10 is the Overall subtopic of the Debt topic and governs a borrower's balance sheet classification (current vs. noncurrent) of specific obligations: short-term obligations expected to be refinanced, due-on-demand loans, callable debt and covenant violations, revolving credit agreements with lock-box arrangements and subjective acceleration clauses, increasing-rate debt, sales of future revenue, and indexed debt. Core rules: callable and demand obligations are current unless a waiver/cure exception applies (470-10-45-10 through 45-11), and a short-term obligation may be excluded from current liabilities only if the entity intends to refinance long term and demonstrates ability via post-balance-sheet issuance of long-term debt/equity or a qualifying financing agreement (470-10-45-14). It also sets debt-versus-deferred-income classification for proceeds from sales of future revenue and disclosure requirements for maturities, unused lines of credit, and refinancings.", "key_points": [ "Obligations due on demand, or that will become due on demand within one year (or operating cycle, if longer) of the balance sheet date, are current liabilities even if liquidation is not expected; a demand provision is not a subjective acceleration clause (470-10-45-10).", "Long-term obligations that are or will be callable because of a covenant violation at the balance sheet date are current liabilities unless the creditor has waived or lost the right to demand repayment for more than one year, or it is probable the violation will be cured within a stated grace period (470-10-45-11).", "Where a lender waives its call right for more than one year while retaining future covenant tests, the debt is noncurrent unless both a violation existed (or would have absent modification) at the balance sheet date and it is probable the borrower cannot cure at measurement dates within the next 12 months (470-10-45-1; Example 1 at 470-10-55-2).", "A short-term obligation is excluded from current liabilities only if the entity intends to refinance on a long-term basis and that intent is supported by post-balance-sheet-date issuance of long-term debt or equity securities, or by a financing agreement meeting the noncancelable/objectively determinable-covenant, no-violation, and financially capable lender conditions (470-10-45-14); the excluded amount is capped by proceeds or amounts available (470-10-45-16 through 45-19).", "Repaying a short-term obligation with current assets after the balance sheet date and later replenishing working capital with long-term financing does not permit exclusion from current liabilities (470-10-45-15; Example 5 at 470-10-55-33).", "Revolver borrowings subject to both a subjective acceleration clause and a lock-box arrangement are short-term obligations classified as current unless the 470-10-45-14 refinancing conditions are met under a separate agreement (470-10-45-5); a springing lock-box arrangement leaves the borrowings long term, with the subjective acceleration clause evaluated under 470-10-45-2.", "For sales of future revenue, factors such as the transaction not purporting to be a sale, significant continuing involvement, cancelability, a capped investor return, or investor recourse create a rebuttable presumption of debt classification (470-10-25-2); debt is amortized under the interest method and deferred income under the units-of-revenue method (470-10-35-3)." ], "categories": [ "Presentation", "Debt and equity", "Disclosure", "Financial statement presentation" ], "audience_level": "intermediate", "student_note": "Balance sheet classification of debt is a recurring exam and practice issue: the classic trap is assuming that a post-year-end covenant waiver or a rollover of short-term borrowings automatically supports noncurrent classification — the waiver must extend more than one year (or a grace-period cure must be probable), and refinancing ability must be demonstrated by an actual long-term issuance or a qualifying, noncancelable financing agreement before the statements are issued.", "related_topics": [ "470-20", "470-50", "470-60", "480-10", "835-30", "210-10" ], "key_concepts": [ "current versus noncurrent classification", "short-term obligations expected to be refinanced", "subjective acceleration clause", "lock-box arrangement", "debt covenant violation and waiver", "callable debt", "sales of future revenue", "increasing-rate debt" ] } ``` Source downloaded (UTC): 2026-09-10T00:30:14.064Z to 2026-09-10T00:30:14.064Z Record version: sha256:7e08ea693d20dbbf7542b1adc379921ed5bab8035e4055f2f16836fe5a9ac2ff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 470-10-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/470/10/#00-status) SEC content: no ##### [470-10-00-1](https://asc.understandingaccounting.org/asc/470/10/#470-10-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:14.064Z to 2026-09-10T00:30:14.064Z Record version: sha256:a4d5f4bae14b0e68725d1b1039ac76bed02fb4dd681e68d7207fc7c3c3772cbe Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
ContractAddedAccounting Standards Update No. 2016-0202/25/2016
LeaseAddedAccounting Standards Update No. 2016-0202/25/2016
Not-for-Profit EntityAddedAccounting Standards Update No. 2023-0610/09/2023
Operating CycleAddedAccounting Standards Update No. 2012-0410/01/2012
Public Business EntityAddedAccounting Standards Update No. 2023-0610/09/2023
SecurityAddedAccounting Standards Update No. 2023-0610/09/2023
470-10-05-5AmendedAccounting Standards Update No. 2012-0410/01/2012
470-10-15-1AmendedAccounting Standards Update No. 2023-0610/09/2023
470-10-25-3AddedAccounting Standards Update No. 2012-0410/01/2012
470-10-25-4AddedAccounting Standards Update No. 2012-0410/01/2012
470-10-35-4AddedAccounting Standards Update No. 2012-0410/01/2012
470-10-45-10AmendedAccounting Standards Update No. 2012-0410/01/2012
470-10-45-14AmendedAccounting Standards Update No. 2012-0410/01/2012
470-10-45-19AmendedAccounting Standards Update No. 2012-0410/01/2012
470-10-45-21AmendedAccounting Standards Update No. 2012-0410/01/2012
470-10-50-1AmendedAccounting Standards Update No. 2020-0608/05/2020
470-10-50-6AddedAccounting Standards Update No. 2023-0610/09/2023
470-10-50-7AddedAccounting Standards Update No. 2023-0610/09/2023
470-10-55-11AmendedAccounting Standards Update No. 2020-0608/05/2020
470-10-55-12AmendedAccounting Standards Update No. 2020-0608/05/2020
470-10-55-18AmendedMaintenance Update 2016-11 (PDF)06/27/2016
470-10-60-2SupersededAccounting Standards Update No. 2020-0608/05/2020
470-10-60-4AmendedAccounting Standards Update No. 2016-0202/25/2016
Source downloaded (UTC): 2026-09-10T00:30:16.675Z to 2026-09-10T00:30:16.675Z Record version: sha256:aa7364508f35e456f083baddee39fc4a98cdd5f47eb738773b089a74a841f738 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 470-10-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/470/10/#05-overview-and-background) SEC content: no ##### [470-10-05-1](https://asc.understandingaccounting.org/asc/470/10/#470-10-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:16.675Z to 2026-09-10T00:30:16.675Z Record version: sha256:1273dc3ffd4080c39987f2f62f576f9c4d801611feeadc3e5a3e2b35e1fbe10a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Codification contains several Topics that address certain aspects of the accounting for debt. The Topics include: 1. a Liabilities 2. b Debt 3. c Distinguishing Liabilities from Equity. ##### [470-10-05-2](https://asc.understandingaccounting.org/asc/470/10/#470-10-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:16.675Z to 2026-09-10T00:30:16.675Z Record version: sha256:b645014f9176d238d149d5b940de62037aa830e13262d634309cd7c6a5cccb5b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Debt Topic provides accounting and reporting guidance for borrowers. This Topic includes the following Subtopics: 1. a Overall 2. b Debt with Conversion and Other Options 3. c Participating Mortgage Loans 4. d Product Financing Arrangements 5. e Modifications and Extinguishments 6. f Troubled Debt Restructurings by Debtors. ##### [470-10-05-3](https://asc.understandingaccounting.org/asc/470/10/#470-10-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:16.675Z to 2026-09-10T00:30:16.675Z Record version: sha256:8e7d87118d3365f312555cad4c77bdfde10ed10bb017f0ff4fd56081432df060 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Liabilities Topic provides accounting and reporting guidance related to liabilities typically considered short-term in nature, and certain guidance that may apply broadly to any liability, including those addressed in this Topic. ##### [470-10-05-4](https://asc.understandingaccounting.org/asc/470/10/#470-10-05-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:16.675Z to 2026-09-10T00:30:16.675Z Record version: sha256:42d87ae0c7acd8543f3ca27f8b61257eaf2eac74f41116dea23a82561398557b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Distinguishing Liabilities from Equity Topic provides accounting and reporting guidance for determining whether a transaction represents a liability or equity. ##### [470-10-05-5](https://asc.understandingaccounting.org/asc/470/10/#470-10-05-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:16.675Z to 2026-09-10T00:30:16.675Z Record version: sha256:fe46cd647b8d3a976ab49c7545be22c46a3d76e113f5a0b899335c5e70d38e0d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Overall Subtopic addresses classification determination for specific obligations, such as the following: 1. a Short-term obligations expected to be refinanced on a long-term basis 2. b Due-on-demand loan arrangements 3. c Callable debt 4. d Sales of future revenue 5. e Increasing rate debt 6. f Debt that includes covenants 7. g Revolving credit agreements subject to lock-box arrangements and subjective acceleration clauses 8. h Indexed debt. ##### [470-10-05-6](https://asc.understandingaccounting.org/asc/470/10/#470-10-05-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:16.675Z to 2026-09-10T00:30:16.675Z Record version: sha256:6c701913f84c8ea25c8f168dbe63f2d858061b6064d9d9ee95679307858d925f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [470-10-05-7](https://asc.understandingaccounting.org/asc/470/10/#470-10-05-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:16.675Z to 2026-09-10T00:30:16.675Z Record version: sha256:ba9fbf427897b93a44bb83786fd283f6f87834ee993e40e5a7320414801168a1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). Source downloaded (UTC): 2026-09-10T00:30:19.735Z to 2026-09-10T00:30:19.735Z Record version: sha256:703e7a8d0955e29d4fb7ff64ad2eb906ec83c428f3a79f0f25087518d0d14b5d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 470-10-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/470/10/#15-scope-and-scope-exceptions) SEC content: no #### Entities ##### [470-10-15-1](https://asc.understandingaccounting.org/asc/470/10/#470-10-15-1) Pending content: yes Source downloaded (UTC): 2026-09-10T00:30:19.735Z to 2026-09-10T00:30:19.735Z Record version: sha256:51e74ca570f0761452b402f283fd0c17552504f82e0c6858fc19f251ab9f5fc9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to all entities. Transition date:(P) June 30, 2027; (N) June 30, 2027Transition guidance: [105-10-65-7](https://asc.understandingaccounting.org/asc/105/10/#105-10-65-7) The guidance in this Subtopic applies to all entities, excluding paragraph [470-10-50-7](https://asc.understandingaccounting.org/asc/470/10/#470-10-50-7), which applies to [public business entities](https://asc.understandingaccounting.org/glossary/p/#public-business-entity "A public business entity is a business entity meeting any one of the criteria below. Neither a not-for-profit entity nor an employee benefit plan is a business entity. It is required by the U.S. Securities and Exchange Commission (SEC) to file or furnish financial statements, or does file or furnish financial statements (including voluntary filers), with the SEC (including other entities whose financial statements or financial information are required to be or are included in a filing). It is required by the Securities Exchange Act of 1934 (the Act), as amended, or rules or regulations promulgated under the Act, to file or furnish financial statements with a regulatory agency other than the SEC. It is required to file or furnish financial statements with a foreign or domestic regulatory agency in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer. It has issued, or is a conduit bond obligor for, securities that are traded, listed, or quoted on an exchange or an over-the-counter market. It has one or more securities that are not subject to contractual restrictions on transfer, and it is required by law, contract, or regulation to prepare U.S. GAAP financial statements (including notes) and make them publicly available on a periodic basis (for example, interim or annual periods). An entity must meet both of these conditions to meet this criterion. An entity may meet the definition of a public business entity solely because its financial statements or financial information is included in another entity's filing with the SEC. In that case, the entity is only a public business entity for purposes of financial statements that are filed or furnished with the SEC.") only. #### Transactions ##### [470-10-15-2](https://asc.understandingaccounting.org/asc/470/10/#470-10-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:19.735Z to 2026-09-10T00:30:19.735Z Record version: sha256:1120ddffb4be4e72a7a7661b63991136337614c8b5ff061eb562861e3cf92e1a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic that relates to separate classification of current assets and current liabilities (that is, a classified balance sheet) applies only when an entity is preparing a classified balance sheet for financial accounting and reporting purposes. Source downloaded (UTC): 2026-09-10T00:30:25.339Z to 2026-09-10T00:30:25.339Z Record version: sha256:becd8ab8c570815a9c22105ada44ec7cdc0a9345c06e8b488e36e5ecbb5a3a69 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 470-10-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/470/10/#25-recognition) SEC content: no #### Sales of Future Revenues or Various Other Measures of Income ##### [470-10-25-1](https://asc.understandingaccounting.org/asc/470/10/#470-10-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:25.339Z to 2026-09-10T00:30:25.339Z Record version: sha256:6bb304c7240285054e6869f47e9e9aea0f5631c96b1fc9843ed84a6379b1c7c1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity receives cash from an investor and agrees to pay to the investor for a defined period a specified percentage or amount of the revenue or of a measure of income (for example, gross margin, operating income, or pretax income) of a particular product line, business segment, trademark, patent, or contractual right. It is assumed that immediate income recognition is not appropriate due to the facts and circumstances. The payment to the investor and the future revenue or income on which the payment is based may be denominated in a foreign currency. ##### [470-10-25-2](https://asc.understandingaccounting.org/asc/470/10/#470-10-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:25.339Z to 2026-09-10T00:30:25.339Z Record version: sha256:fbb2aff9579f0a03f75145f4cb23f5964677fd63251e5f03de856b088b1d0f09 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. While the classification of the proceeds from the investor as debt or deferred income depends on the specific facts and circumstances of the transaction, the presence of any one of the following factors independently creates a rebuttable presumption that classification of the proceeds as debt is appropriate: 1. a The transaction does not purport to be a sale (that is, the form of the transaction is debt). 2. b The entity has significant continuing involvement in the generation of the cash flows due the investor (for example, active involvement in the generation of the operating revenues of a product line, subsidiary, or business segment). 3. c The transaction is cancelable by either the entity or the investor through payment of a lump sum or other transfer of assets by the entity. 4. d The investor's rate of return is implicitly or explicitly limited by the terms of the transaction. 5. e Variations in the entity's revenue or income underlying the transaction have only a trifling impact on the investor's rate of return. 6. f The investor has any recourse to the entity relating to the payments due the investor. #### Indexed Debt ##### [470-10-25-3](https://asc.understandingaccounting.org/asc/470/10/#470-10-25-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:25.339Z to 2026-09-10T00:30:25.339Z Record version: sha256:2d97ff207486f01eb13d06921d12ec2bf95bd6d157fdf44379236d7a35762101 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Debt instruments may be issued with both guaranteed and contingent payments. The contingent payments may be linked to the price of a specific commodity (for example, oil) or a specific index (for example, the S&P 500). In some instances, the investor's right to receive the contingent payment (an indexing feature) is separable from the debt instrument. If the indexing feature does not warrant separate accounting under Topic 815 or the instrument does not meet the definition of a derivative under Topic 815, the entire instrument shall be accounted for in accordance with paragraphs [470-10-25-4](https://asc.understandingaccounting.org/asc/470/10/#470-10-25-4) and [470-10-35-4](https://asc.understandingaccounting.org/asc/470/10/#470-10-35-4). ##### [470-10-25-4](https://asc.understandingaccounting.org/asc/470/10/#470-10-25-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:25.339Z to 2026-09-10T00:30:25.339Z Record version: sha256:90f727c316b98101e7083165f835422d7ba1356236eeeab74c1cca85aa90fa31 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the investor's right to receive the contingent payment is separable, the proceeds shall be allocated between the debt instrument and the investor's stated right to receive the contingent payment. The premium or discount on the debt resulting from the allocation shall be accounted for in accordance with Subtopic 835-30. Source downloaded (UTC): 2026-09-10T00:30:29.055Z to 2026-09-10T00:30:29.055Z Record version: sha256:88b5e2b41a8f97e638eb8e432e17e7e0cf3b0b2221d8642015d27355a395d78c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 470-10-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/470/10/#35-subsequent-measurement) SEC content: no #### Increasing Rate Debt ##### [470-10-35-1](https://asc.understandingaccounting.org/asc/470/10/#470-10-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:29.055Z to 2026-09-10T00:30:29.055Z Record version: sha256:7cf462807e59bc568deb335f3a55bbe772baa4f17eb293e313a7c38447aeedec Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A debt instrument may have a maturity date that can be extended at the option of the borrower at each maturity date until final maturity. In such cases, the interest rate on the note increases a specified amount each time the note is renewed. For guidance on accounting for interest, see Subtopic 835-30. ##### [470-10-35-2](https://asc.understandingaccounting.org/asc/470/10/#470-10-35-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:29.055Z to 2026-09-10T00:30:29.055Z Record version: sha256:d8e2fa2bd69bc3b0c85aab8ef7b40d4e6d09590171498c1ddabb3c7cafed9dbf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The borrower's periodic interest cost shall be determined using the interest method based on the estimated outstanding term of the debt. In estimating the term of the debt, the borrower shall consider its plans, ability, and intent to service the debt. Debt issue costs shall be amortized over the same period used in the interest cost determination. The term-extending provisions of the debt instrument should be analyzed to determine whether those provisions constitute an embedded derivative that warrants separate accounting as a derivative under Subtopic 815-10. #### Sale of Future Revenues or Various Other Measures of Income ##### [470-10-35-3](https://asc.understandingaccounting.org/asc/470/10/#470-10-35-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:29.055Z to 2026-09-10T00:30:29.055Z Record version: sha256:909723d2791adda2d6169918ee7931cb44cc0be7a81c875ca1f370a69b597903 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Amounts recorded as debt shall be amortized under the interest method (see Subtopic 835-30) and amounts recorded as deferred income shall be amortized under the [units-of-revenue method](https://asc.understandingaccounting.org/glossary/u/#units-of-revenue-method "A method of amortizing deferred revenue that arises under certain sales of future revenues. Under this method, amortization for a period is calculated by computing a ratio of the proceeds received from the investor to the total payments expected to be made to the investor over the term of the agreement, and then applying that ratio to the period's cash payment."). #### Indexed Debt ##### [470-10-35-4](https://asc.understandingaccounting.org/asc/470/10/#470-10-35-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:29.055Z to 2026-09-10T00:30:29.055Z Record version: sha256:aec9a2a4f70ff76257bf4bf2055068e8155e4910615fff667aed7de1265a6983 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As the applicable index value increases such that an issuer would be required to pay an investor a contingent payment at maturity, the issuer shall recognize a liability for the amount that the contingent payment exceeds the amount, if any, originally attributed to the contingent payment feature. The liability for the contingent payment feature shall be based on the applicable index value at the balance sheet date and shall not anticipate any future changes in the index value. When no proceeds are allocated originally to the contingent payment, the additional liability resulting from the fluctuating index value shall be accounted for as an adjustment of the carrying amount of the debt obligation. 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. Source downloaded (UTC): 2026-09-10T00:30:35.359Z to 2026-09-10T00:30:35.359Z Record version: sha256:689b129565311eebc43c59ea52017163fee5951adc0f4a2d0661e700957051cd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 470-10-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/470/10/#50-disclosure) SEC content: no #### Disclosure of Long-Term Obligations ##### [470-10-50-1](https://asc.understandingaccounting.org/asc/470/10/#470-10-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:35.359Z to 2026-09-10T00:30:35.359Z Record version: sha256:bca4230e39f508a9de5663ca42d9e2ef9a13652737bee3c3e1bce7c5d7ef37d3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The combined aggregate amount of maturities and sinking fund requirements for all long-term borrowings shall be disclosed for each of the five years following the date of the latest balance sheet presented. (See paragraph [505-10-50-11](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-11) for related disclosure guidance on redeemable securities). See Example 3 (paragraph [470-10-55-10](https://asc.understandingaccounting.org/asc/470/10/#470-10-55-10)) for an illustration of this disclosure requirement. ##### [470-10-50-2](https://asc.understandingaccounting.org/asc/470/10/#470-10-50-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:35.359Z to 2026-09-10T00:30:35.359Z Record version: sha256:f6b99c8ce6acce4763ac129cf8f6e0b78ea92da96f5dab80ab385cbe5c62fdad Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an obligation under paragraph [470-10-45-11(b)](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-11) is classified as a long-term liability (or, in the case of an unclassified balance sheet, is included as a long-term liability in the disclosure of debt maturities), the circumstances shall be disclosed. #### Subjective Acceleration Clauses ##### [470-10-50-3](https://asc.understandingaccounting.org/asc/470/10/#470-10-50-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:35.359Z to 2026-09-10T00:30:35.359Z Record version: sha256:4c9907bd7df0e1dfdd9ebac34eca435be21fba7e8111688f9a60a00476562494 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As indicated in paragraph [470-10-45-2](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-2), in some situations 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).") shall be reclassified. That paragraph explains that other situations would indicate only disclosure of the existence of such clauses. That paragraph states further that neither reclassification nor disclosure is required if the likelihood of the acceleration of the due date is remote, such as when 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. #### Short-Term Obligations Expected to Be Refinanced ##### [470-10-50-4](https://asc.understandingaccounting.org/asc/470/10/#470-10-50-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:35.359Z to 2026-09-10T00:30:35.359Z Record version: sha256:1566dfab24ad40f53ebc7dccd3af64e3558f5ced5ba51f51003455db0bb8b37e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a short-term obligation is excluded from current liabilities pursuant to the provisions of this Subtopic, the notes to financial statements shall include a general description of the financing agreement and the terms of any new obligation incurred or expected to be incurred or equity securities issued or expected to be issued as a result of a refinancing. #### Summary Disclosure of Securities Outstanding ##### [470-10-50-5](https://asc.understandingaccounting.org/asc/470/10/#470-10-50-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:35.359Z to 2026-09-10T00:30:35.359Z Record version: sha256:e5f42c71606dc5868385e053be57962411b51b1b7408a62c3e602e3a259748eb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [505-10-50-3](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-3) requires that an entity explain, in summary form within its financial statements, the pertinent rights and privileges of various securities outstanding. #### Unused Commitments and Lines of Credit ##### [470-10-50-6](https://asc.understandingaccounting.org/asc/470/10/#470-10-50-6) Pending content: yes Source downloaded (UTC): 2026-09-10T00:30:35.359Z to 2026-09-10T00:30:35.359Z Record version: sha256:77e3d7a143cfc97fb1efe6af2079ea3a8dca99db8cfaa1351fcac8212c0385ae Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) June 30, 2027; (N) June 30, 2027Transition guidance: [105-10-65-7](https://asc.understandingaccounting.org/asc/105/10/#105-10-65-7)An entity shall separately disclose the following in the notes to financial statements: 1. a The amount and terms of unused commitments for long-term financing arrangements (including commitment fees and the conditions under which commitments may be withdrawn) 2. b The amount and terms of unused lines of credit for short-term financing arrangements (including commitment fees and the conditions under which lines may be withdrawn) and the amount of those lines of credit that support commercial paper borrowing arrangements or similar arrangements. #### Weighted-Average Interest Rate on Short-Term Borrowings ##### [470-10-50-7](https://asc.understandingaccounting.org/asc/470/10/#470-10-50-7) Pending content: yes Source downloaded (UTC): 2026-09-10T00:30:35.359Z to 2026-09-10T00:30:35.359Z Record version: sha256:b64771fbcb79d244ada086d1f3794e81817487b50acc2576b03a6ac2da0673f6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) June 30, 2027; (N) June 30, 2027Transition guidance: [105-10-65-7](https://asc.understandingaccounting.org/asc/105/10/#105-10-65-7)A [public business entity](https://asc.understandingaccounting.org/glossary/p/#public-business-entity "A public business entity is a business entity meeting any one of the criteria below. Neither a not-for-profit entity nor an employee benefit plan is a business entity. It is required by the U.S. Securities and Exchange Commission (SEC) to file or furnish financial statements, or does file or furnish financial statements (including voluntary filers), with the SEC (including other entities whose financial statements or financial information are required to be or are included in a filing). It is required by the Securities Exchange Act of 1934 (the Act), as amended, or rules or regulations promulgated under the Act, to file or furnish financial statements with a regulatory agency other than the SEC. It is required to file or furnish financial statements with a foreign or domestic regulatory agency in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer. It has issued, or is a conduit bond obligor for, securities that are traded, listed, or quoted on an exchange or an over-the-counter market. It has one or more securities that are not subject to contractual restrictions on transfer, and it is required by law, contract, or regulation to prepare U.S. GAAP financial statements (including notes) and make them publicly available on a periodic basis (for example, interim or annual periods). An entity must meet both of these conditions to meet this criterion. An entity may meet the definition of a public business entity solely because its financial statements or financial information is included in another entity's filing with the SEC. In that case, the entity is only a public business entity for purposes of financial statements that are filed or furnished with the SEC.") shall disclose the weighted-average interest rate on short-term borrowings outstanding as of the date of each balance sheet presented. Source downloaded (UTC): 2026-09-10T00:30:39.266Z to 2026-09-10T00:30:39.266Z Record version: sha256:2d3e8f714b2d0f317bed2f19643102b54355acadb42619dd111d1376a48cac13 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 470-10-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/470/10/#55-implementation-guidance-and-illustrations) SEC content: no #### Implementation Guidance ##### [470-10-55-1](https://asc.understandingaccounting.org/asc/470/10/#470-10-55-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:39.266Z to 2026-09-10T00:30:39.266Z Record version: sha256:cd0118d6641110c5f0665a603af3cce71f7618f928124810e47b052a31309645 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Under paragraph [470-10-45-2](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-2), the lender has already loaned money on a long-term basis. To continue long-term classification requires a judgment about the likelihood of acceleration of the due date. Paragraphs [470-10-45-13 through 45-20](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-13) cover circumstances in which the obligation is by its terms short-term. For such an obligation to be excluded from current liabilities, the lender must advance new funds or refinance the short-term obligation on a long-term basis based on conditions existing on the date of the new loan or refinancing. Therefore, to classify an obligation as long-term, paragraphs [470-10-45-13 through 45-20](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-13) require a higher standard for a financing agreement that permits an entity to refinance a short-term obligation on a long-term basis than paragraph [470-10-50-2](https://asc.understandingaccounting.org/asc/470/10/#470-10-50-2) requires for an existing long-term loan for which early repayment might be requested. #### Illustrations ##### [470-10-55-2](https://asc.understandingaccounting.org/asc/470/10/#470-10-55-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:39.266Z to 2026-09-10T00:30:39.266Z Record version: sha256:d2775f57c0d55546654555d39e3f9b2325d617a694a7eb0058d40b2b6837618a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraph [470-10-45-1](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-1) for the classification of long-term debt when a debt covenant violation is waived by a lender for a period greater than a year. ##### [470-10-55-3](https://asc.understandingaccounting.org/asc/470/10/#470-10-55-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:39.266Z to 2026-09-10T00:30:39.266Z Record version: sha256:fb1097d0340e558250d996d08b4bb27142e7d5d4cece460cfcd634f8c599ade7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A borrower has a long-term loan that requires compliance with certain covenants, such as maintenance of a minimum current ratio, minimum debt-to-equity ratio, or minimum level of shareholders' equity. The borrower must meet the covenants on a quarterly or semiannual basis. At one of the compliance dates, the borrower violates a covenant. That violation gives the lender the right to call the debt. The lender waives that right for a period greater than one year but retains the future covenant requirements. ##### [470-10-55-4](https://asc.understandingaccounting.org/asc/470/10/#470-10-55-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:39.266Z to 2026-09-10T00:30:39.266Z Record version: sha256:fc7d66ea3ef6b1feae4d0ba52580f4e92857d3423ea722b48dd80d6fd9f1eda3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The issue is whether the waiver of the lender's rights resulting from the violation of the covenant with the retention of the periodic covenant tests represents, in substance, a grace period. If viewed as a grace period, the borrower would classify the debt as current (see paragraph [470-10-45-11](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-11)) unless it is probable that the borrower can cure the violation (comply with the covenant) within the grace period. Specifically, the balance sheet classification of an obligation is considered in the following situations: 1. a The debt covenants are applicable only after the balance sheet date, and it is probable that the borrower will fail to meet the covenant requirement at the compliance date three months after the balance sheet date. 2. b The borrower meets the current covenant requirement at the balance sheet date, and it is probable that the borrower will fail to meet the same covenant requirement at the compliance date in three months. 3. c The borrower meets the current covenant requirement, and it is probable that the borrower will fail to meet a more restrictive covenant requirement applicable at the compliance date in three months. 4. d The borrower has met the covenant requirement in the prior quarter but before the balance sheet date negotiates a modification of the loan agreement that eliminates the covenant requirement at the balance sheet date or modifies the requirement so that the borrower will comply. Absent the modification, the borrower would have been in violation of the covenant at the balance sheet date. The same or a more restrictive covenant must be met at the compliance date in three months, and it is probable that the borrower will fail to meet that requirement at that subsequent date. 5. e The borrower is in violation of the current covenant requirement at the balance sheet date and, after the balance sheet date but before the financial statements are issued or are available to be issued (as discussed in Section 855-10-25), obtains a waiver. The same or a more restrictive covenant must be met at the compliance date in three months, and it is probable that the borrower will fail to meet that requirement at that subsequent date. ##### [470-10-55-5](https://asc.understandingaccounting.org/asc/470/10/#470-10-55-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:39.266Z to 2026-09-10T00:30:39.266Z Record version: sha256:4c779ef22e24022b9cd9ef1b68c61ca00a1674b8df5f50db62faaaaf5cc2ef18 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In the situations described in (a) through (c) of the preceding paragraph, the debt would be classified as noncurrent, in which case the borrower would be required to disclose the adverse consequences of its probable failure to satisfy future covenants. ##### [470-10-55-6](https://asc.understandingaccounting.org/asc/470/10/#470-10-55-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:39.266Z to 2026-09-10T00:30:39.266Z Record version: sha256:471c7601bf1e8b7a255c85d3fb4cb544680f08bd06ad5b490786b85b23b235e4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In the situations described in paragraph [470-10-55-4(d) through (e)](https://asc.understandingaccounting.org/asc/470/10/#470-10-55-4), the debt would be classified as current. However, if the debt is expected to be refinanced on a long-term basis and the borrower meets the provisions of paragraphs [470-10-45-13 through 45-20](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-13) , the debt would be classified as noncurrent. ##### [470-10-55-7](https://asc.understandingaccounting.org/asc/470/10/#470-10-55-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:39.266Z to 2026-09-10T00:30:39.266Z Record version: sha256:bdb5d6804f9e71724045af3e7a2d363843115b05573755e8782c8a03fb04258a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance for the appropriate classification by the issuer of debt if all of the following conditions exist: 1. a The debt has a long-term maturity (for example, 30 to 40 years). 2. b The debt holder may redeem or put the bond on short notice (7 to 30 days). 3. c The issuer has a remarketing agreement that states that the agent will make its best effort to remarket the bond when redeemed. 4. d The debt is secured by a short-term letter of credit that provides protection to the debt holder in the event that the redeemed debt cannot be remarketed. (Amounts drawn against the letter of credit are payable back to the issuer of the letter of credit by the issuer of the redeemable debt instrument on the same day that the drawdown occurs.) ##### [470-10-55-8](https://asc.understandingaccounting.org/asc/470/10/#470-10-55-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:39.266Z to 2026-09-10T00:30:39.266Z Record version: sha256:9cc95ce64bcbb5124d2e419ff2f8f16a10aa5b3e28cabd9b73d149931b2da289 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Debt agreements that allow a debt holder to redeem (or put) a debt instrument on demand (or within one year) should be classified as short-term liabilities despite the existence of a best-efforts remarketing agreement. That is, unless the issuer of the redeemable debt instrument has the ability and intent to refinance the debt on a long-term basis as provided for in paragraph [470-10-45-14](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-14), the debt should be classified as a current liability. ##### [470-10-55-9](https://asc.understandingaccounting.org/asc/470/10/#470-10-55-9) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:39.266Z to 2026-09-10T00:30:39.266Z Record version: sha256:49b30a0b030977296f11e934085b44680676a51b14e1ad4640c4204e65da771e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In this Example, the obligation would be classified by the issuer as noncurrent only if the letter-of-credit arrangement meets the requirements of paragraph [470-10-45-14(b)](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-14). ##### [470-10-55-10](https://asc.understandingaccounting.org/asc/470/10/#470-10-55-10) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:39.266Z to 2026-09-10T00:30:39.266Z Record version: sha256:f3232e6ec316836839b4297b9fd49dff33cfa9088f3e74a86cd5ac63a79b9344 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example provides an illustration of the guidance in paragraph [470-10-50-1](https://asc.understandingaccounting.org/asc/470/10/#470-10-50-1) for disclosures for long-term borrowings and preferred stock with mandatory redemption requirements. This Example has the following assumptions. ##### [470-10-55-11](https://asc.understandingaccounting.org/asc/470/10/#470-10-55-11) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:39.266Z to 2026-09-10T00:30:39.266Z Record version: sha256:c298ee3d7d9542c24ad197e474b17d94d3a39dbfb8bf050792fd6b323eab7961 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entity D has outstanding two long-term loans, one convertible debt, and one issue of preferred stock with mandatory redemption requirements. The first loan is a $100 million sinking fund debenture with annual sinking fund payments of $10 million in 19X2, 19X3, and 19X4, $15 million in 19X5 and 19X6, and $20 million in 19X7 and 19X8. The second loan is a $50 million note due in 19X5. The convertible debt has a principal amount of $70 million that is not convertible before maturity in 19X9. This convertible debt requires a 2 percent annual cumulative sinking fund payment of $1.4 million until settled. The $30 million issue of preferred stock requires a 5 percent annual cumulative sinking fund payment of $1.5 million until retired. ##### [470-10-55-12](https://asc.understandingaccounting.org/asc/470/10/#470-10-55-12) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:39.266Z to 2026-09-10T00:30:39.266Z Record version: sha256:704ac13cfbb73bf2f5efcf36993e42de5098e323819039e519caad8dc468a043 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entity D's disclosure might be as follows. - Maturities and sinking fund requirements on long-term loans and convertible debt and sinking fund requirements on preferred stock subject to mandatory redemption are as follows (in thousands). - ![](https://asc.understandingaccounting.org/asc-img/GUID-BEA56435-5D55-4747-8D67-DC82D27E26D9-low.gif) Long-term loans Preferred stock Convertible debt 19X2 " $10,000 " " $1,500 " " $1,400 " 19X3 " 10,000 " " 1,500 " " 1,400 " 19X4 " 10,000 " " 1,500 " " 1,400 " 19X5 " 65,000 " " 1,500 " " 1,400 " 19X6 " 15,000 " " 1,500 " " 1,400 " ##### [470-10-55-13](https://asc.understandingaccounting.org/asc/470/10/#470-10-55-13) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:39.266Z to 2026-09-10T00:30:39.266Z Record version: sha256:dcfb9b84943ceea46d6fb0ec474c7c12b8ff0b49316b239ab21025c923363f99 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following Cases illustrate various scenarios for refinancing the current portion of long-term debt and notes payable as discussed in paragraphs [470-10-45-13 through 45-20](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-13) : 1. a Entity refinances on long-term basis the current maturity of long-term debt and notes payable (Case A). 2. b Laws prohibit the transfer of funds (Case B). 3. c Entity issues debentures to liquidate the debt (Case C). 4. d Entity negotiates a revolving credit agreement (Case D). 5. e Entity negotiates a revolving credit agreement with borrowing limits (Case E). 6. f Entity refinances commercial paper (Case F). 7. g Case illustrates balance sheet presentation (Case G). ##### [470-10-55-14](https://asc.understandingaccounting.org/asc/470/10/#470-10-55-14) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:39.266Z to 2026-09-10T00:30:39.266Z Record version: sha256:b8eccac5d2e1c98a1635c9f9e63270c35e48ae6ad83e253e27109da4055dfe76 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Cases in this Example do not comprehend all possible circumstances and do not include all the disclosures that would typically be made regarding long-term debt or current liabilities. ##### [470-10-55-15](https://asc.understandingaccounting.org/asc/470/10/#470-10-55-15) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:39.266Z to 2026-09-10T00:30:39.266Z Record version: sha256:25cb5516eb29d8817c72e1b5ef974282d7e2a85ae6f700a7753dcd2244a942ef Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Cases A through G share all of the following assumptions: 1. a Entity A's fiscal year-end is December 31, 19X5. 2. b The date of issuance of the December 31, 19X5, financial statements is March 31, 19X6; the Entity's practice is to issue a classified balance sheet. 3. c At December 31, 19X5, short-term obligations include $5,000,000 representing the portion of 6 percent long-term debt maturing in February 19X6 and $3,000,000 of 9 percent notes payable issued in November 19X5 and maturing in July 19X6. 4. d The Entity intends to refinance on a long-term basis both the current maturity of long-term debt and the 9 percent notes payable. 5. e Accounts other than the long-term debt maturing in February 19X6 and the notes payable maturing in July 19X6 are as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-59C0DF67-5F7E-4AB2-80D7-D6770804EC7A-low.gif) Current assets " $30,000,000 " Other assets " $50,000,000 " Accounts payable and accruals " $10,000,000 " Other long-term debt " $25,000,000 " Shareholders' equity " $37,000,000 " 6. f Unless otherwise indicated, the Cases also assume that the lender or prospective lender is expected to be capable of honoring the agreement, that there is no evidence of a violation of any provision, and that the terms of borrowings available under the agreement are readily determinable. ##### [470-10-55-16](https://asc.understandingaccounting.org/asc/470/10/#470-10-55-16) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:39.266Z to 2026-09-10T00:30:39.266Z Record version: sha256:1239d5f4fa7ba562766ede177d7a6a05d28f708f56e4892bb1e3ebc34642074f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Entity negotiates a financing agreement with a commercial bank in December 19X5 for a maximum borrowing of $8,000,000 at any time through 19X7 with the following terms: 1. a Borrowings are available at Entity A's request for such purposes as it deems appropriate and will mature three years from the date of borrowing. 2. b Amounts borrowed will bear interest at the bank's prime rate. 3. c An annual commitment fee of 1/2 of 1 percent is payable on the difference between the amount borrowed and $8,000,000. 4. d The agreement is cancelable by the lender only if any of the following occur: 1. 1 The Entity's [working capital](https://asc.understandingaccounting.org/glossary/w/#working-capital "Working capital (also called net working capital) is represented by the excess of current assets over current liabilities and identifies the relatively liquid portion of total entity capital that constitutes a margin or buffer for meeting obligations within the ordinary operating cycle of the entity."), excluding borrowings under the agreement, falls below $10,000,000. 2. 2 The Entity becomes obligated under lease agreements to pay an annual rental in excess of $1,000,000. 3. 3 Treasury stock is acquired without the prior approval of the prospective lender. 4. 4 The Entity guarantees indebtedness of unaffiliated persons in excess of $500,000. ##### [470-10-55-17](https://asc.understandingaccounting.org/asc/470/10/#470-10-55-17) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:39.266Z to 2026-09-10T00:30:39.266Z Record version: sha256:3241ffca822eeec0b936e6456eeb8483c1ea3bf1166fca280b86ce2bbb091f9f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Entity's intention to refinance meets the condition specified by paragraph [470-10-45-14](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-14). Compliance with the provisions listed in (d) of the preceding paragraph is objectively determinable or measurable; therefore, the condition specified by paragraph [470-10-45-14(b)(1)](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-14) is met. The proceeds of borrowings under the agreement are clearly available for the liquidation of the 9 percent notes payable and the long-term debt maturing in February 19X6. Both obligations, therefore, would be classified as other than current liabilities. ##### [470-10-55-18](https://asc.understandingaccounting.org/asc/470/10/#470-10-55-18) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:39.266Z to 2026-09-10T00:30:39.266Z Record version: sha256:42356bcb8ee1580a7e7d7169367c16facb886efab8754599e3dcd2d8529cf238 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Following are the liability section of Entity A's balance sheet at December 31, 19X5, and the related note disclosures required by this Subtopic, based on the information in paragraphs [470-10-55-15 through 55-16](https://asc.understandingaccounting.org/asc/470/10/#470-10-55-15) . Because the balance sheet is issued subsequent to the February 19X6 maturity of the long-term debt, the note describes the refinancing of that obligation. - ![](https://asc.understandingaccounting.org/asc-img/GUID-37DFF29C-5D5B-46A5-A2FB-EEA74ED02CDC-low.gif) "December 31, 19X5 " Current Liabilities: Accounts payable and accruals " $10,000,000 " Total Current Liabilities " 10,000,000 " Long-Term Debt: 9% notes payable (Note A) " 3,000,000 " (a) 6% debt due February 19X6 (Note A) " 5,000,000 " (a) Other long-term debt " 25,000,000 " Total Long-Term Debt " 33,000,000 " Total Liabilities " $43,000,000 " (a) "These obligations may also be shown in captions distinct from both current liabilities and long-term debt, such as Interim Debt, Short-Term Debt Expected to Be Refinanced, and Intermediate Debt." - Note A - The Entity has entered into a financing agreement with a commercial bank that permits the Entity to borrow at any time through 19X7 up to $8,000,000 at the bank's prime rate of interest. The Entity must pay an annual commitment fee of 1/2 of 1 percent of the unused portion of the commitment. Borrowings under the financing agreement mature three years after the date of the loan. Among other things, the agreement prohibits the acquisition of treasury stock without prior approval by the bank, requires maintenance of working capital of $10,000,000 exclusive of borrowings under the agreement, and limits the annual rental under lease agreements to $1,000,000. In February 19X6, the Entity borrowed $5,000,000 at 8 percent and liquidated the 6 percent long-term debt, and it intends to borrow additional funds available under the agreement to refinance the 9 percent notes payable maturing in July 19X6. ##### [470-10-55-19](https://asc.understandingaccounting.org/asc/470/10/#470-10-55-19) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:39.266Z to 2026-09-10T00:30:39.266Z Record version: sha256:eee4f4e6157ad093a5c446f673de67fc04feaa0067b4ae8d9fcad70f46e2c41b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A foreign subsidiary of the Entity negotiates a financing agreement with its local bank in December 19X5. Funds are available to the subsidiary for its unrestricted use, including loans to affiliated entities; other terms are identical to those cited in Case A. Local laws prohibit the transfer of funds outside the country. ##### [470-10-55-20](https://asc.understandingaccounting.org/asc/470/10/#470-10-55-20) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:39.266Z to 2026-09-10T00:30:39.266Z Record version: sha256:0b8180ac2469d7d736b9e3d4633c18110e1a63fee47dbf6a8f663f24a383aac0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The requirement of paragraph [470-10-45-14(b)(1)](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-14) is met because compliance with the provisions of the agreement is objectively determinable or measurable. Because of the laws prohibiting the transfer of funds, however, the proceeds from borrowings under the agreement are not available for liquidation of the debt maturing in February and July 19X6. Accordingly, both the 6 percent debt maturing in February 19X6 and the 9 percent notes payable maturing in July 19X6 would be classified as current liabilities. ##### [470-10-55-21](https://asc.understandingaccounting.org/asc/470/10/#470-10-55-21) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:39.266Z to 2026-09-10T00:30:39.266Z Record version: sha256:6ee0d4a6e2f4848e034d68cc0881fd96fb3ec501142fbb13d023f9f37dea9dca Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In this Case, the Entity issues $8,000,000 of 10-year debentures to the public in January 19X6. The Entity intends to use the proceeds to liquidate the $5,000,000 debt maturing February 19X6 and the $3,000,000 of 9 percent notes payable maturing July 19X6. In addition, assume the debt maturing February 19X6 is paid before the issuance of the balance sheet, and the remaining proceeds from the sale of debentures are invested in a U.S. Treasury note maturing the same day as the 9 percent notes payable. ##### [470-10-55-22](https://asc.understandingaccounting.org/asc/470/10/#470-10-55-22) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:39.266Z to 2026-09-10T00:30:39.266Z Record version: sha256:e286bdec7c0ac0fcc2b51111ccd74a60d51d13ba4059abf5a90fb342847df1f1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Because the Entity refinanced the long-term debt maturing in February 19X6 in a manner that meets the conditions set forth in paragraph [470-10-45-14](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-14), that obligation would be excluded from current liabilities. In addition, the 9 percent notes payable maturing in July 19X6 would also be excluded because the Entity has obtained funds expressly intended to be used to liquidate those notes and not intended to be used in current operations. In balance sheets after the date of sale of the debentures and before the maturity date of the notes payable, the Entity would exclude the notes payable from current liabilities if the U.S. Treasury note is excluded from current assets (see paragraph [210-10-45-4](https://asc.understandingaccounting.org/asc/210/10/#210-10-45-4)). ##### [470-10-55-23](https://asc.understandingaccounting.org/asc/470/10/#470-10-55-23) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:39.266Z to 2026-09-10T00:30:39.266Z Record version: sha256:7937bd45aed94b5f6d7d03579e57480582cdf1a1b67da7873c9ac0f66b75c835 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the debentures had been sold before January 1, 19X6, the $8,000,000 of obligations to be paid would be excluded from current liabilities in the balance sheet at that date if the $8,000,000 in funds were excluded from current assets. ##### [470-10-55-24](https://asc.understandingaccounting.org/asc/470/10/#470-10-55-24) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:39.266Z to 2026-09-10T00:30:39.266Z Record version: sha256:d62e47c4f5d5f9e6bfffcbebfbcae7f4383bfc916c4699eed994cb209033b7e3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If, instead of issuing the 10-year debentures, the Entity had issued $8,000,000 of equity securities and all other facts in this Case remained unchanged, both the 6 percent debt due February 19X6 and the 9 percent notes payable due July 19X6 would be classified as liabilities other than current liabilities, such as Indebtedness Due in 19X6 Refinanced in January 19X6. ##### [470-10-55-25](https://asc.understandingaccounting.org/asc/470/10/#470-10-55-25) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:39.266Z to 2026-09-10T00:30:39.266Z Record version: sha256:53591d30be7b1f925bee24771359f71b0ba27b9ed2d310e858b9b33a874a6bfc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In December 19X5 the Entity negotiates a revolving credit agreement providing for unrestricted borrowings up to $10,000,000. Borrowings will bear interest at 1 percent over the prevailing prime rate of the bank with which the agreement is arranged but in any event not less than 8 percent, will have stated maturities of 90 days, and will be continuously renewable for 90-day periods at the Entity's option for 3 years provided there is compliance with the terms of the agreement. Provisions of the agreement are similar to those cited in paragraph [470-10-55-16(d)](https://asc.understandingaccounting.org/asc/470/10/#470-10-55-16). Further, the Entity intends to renew obligations incurred under the agreement for a period extending beyond one year from the balance sheet date. There are no outstanding borrowings under the agreement at December 31, 19X5. ##### [470-10-55-26](https://asc.understandingaccounting.org/asc/470/10/#470-10-55-26) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:39.266Z to 2026-09-10T00:30:39.266Z Record version: sha256:d190922490a2174a3675d3d868cff092dbc7df2f2358a37cf901d4bed9e0ddc6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In this instance, the long-term debt maturing in February 19X6 and the 9 percent notes payable maturing in July 19X6 would be excluded from current liabilities because the Entity consummated a financing agreement meeting the conditions set forth in paragraph [470-10-45-14(b)](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-14) before the issuance of the balance sheet. ##### [470-10-55-27](https://asc.understandingaccounting.org/asc/470/10/#470-10-55-27) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:39.266Z to 2026-09-10T00:30:39.266Z Record version: sha256:4b3b2b5de22651deb6a536add14dea66082fd1c6d82a73fb2f031bab83a72094 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Assume that the agreement cited in Case D included an additional provision limiting the amount to be borrowed by the Entity to the amount of its inventory, which is pledged as collateral and is expected to range between a high of $8,000,000 during the second quarter of 19X6 and a low of $4,000,000 during the fourth quarter of 19X6. ##### [470-10-55-28](https://asc.understandingaccounting.org/asc/470/10/#470-10-55-28) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:39.266Z to 2026-09-10T00:30:39.266Z Record version: sha256:899c114acff9bcdab4dcbfb2d07fc7fcdb03a55ba289eb12fc7e12ab79e0a5d9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The terms of the agreement comply with the conditions required by this Subtopic; however, because the minimum amount expected to be available from February to December 19X6 is $4,000,000, only that amount of short-term obligations can be excluded from current liabilities (see paragraphs [470-10-45-16 through 45-19](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-16) ). Whether the obligation to be excluded is a portion of the currently maturing long-term debt or some portions of both it and the 9 percent notes payable depends on the intended timing of the borrowing. ##### [470-10-55-29](https://asc.understandingaccounting.org/asc/470/10/#470-10-55-29) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:39.266Z to 2026-09-10T00:30:39.266Z Record version: sha256:a3527a214f09e665b3042a47aa6854a57cd0b20c76517f434741e74aee585b92 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the Entity intended to refinance only the 9 percent notes payable due July 19X6 and the amount of its inventory is expected to reach a low of approximately $2,000,000 during the second quarter of 19X6 but be at least $3,000,000 in July 19X6 and thereafter during 19X6, the $3,000,000 9 percent notes payable would be excluded from current liabilities at December 31, 19X5 (see paragraphs [470-10-45-16 through 45-19](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-16) ). ##### [470-10-55-30](https://asc.understandingaccounting.org/asc/470/10/#470-10-55-30) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:39.266Z to 2026-09-10T00:30:39.266Z Record version: sha256:b9be4cd231d4f6f3d99895f258ef2a8b2674ee6651d60e28415aae5216abeb1d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In lieu of the facts given in paragraph [470-10-55-15(c) through (d)](https://asc.understandingaccounting.org/asc/470/10/#470-10-55-15), assume that during 19X5 the Entity entered into a contract to have a warehouse built. The warehouse is expected to be financed by issuance of the Entity's commercial paper. In addition, the Entity negotiated a standby agreement with a commercial bank that provides for maximum borrowings equal to the expected cost of the warehouse, which will be pledged as collateral. The agreement also requires that the proceeds from the sale of commercial paper be used to pay construction costs. Borrowings may be made under the agreement only if the Entity is unable to issue new commercial paper. The proceeds of borrowings must be used to retire outstanding commercial paper and to liquidate additional liabilities incurred in the construction of the warehouse. At December 31, 19X5, the Entity has $7,000,000 of commercial paper outstanding and $1,000,000 of unpaid construction costs resulting from a progress billing through December 31. ##### [470-10-55-31](https://asc.understandingaccounting.org/asc/470/10/#470-10-55-31) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:39.266Z to 2026-09-10T00:30:39.266Z Record version: sha256:ca1a8283bc677ba6f4944dce58ee9657229a25c02966989253dcfc34764baec9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Because the commercial paper will be refinanced on a long-term basis, either by uninterrupted renewal or, failing that, by a borrowing under the agreement, the commercial paper would be excluded from current liabilities. The $1,000,000 liability for the unpaid progress billing results from the construction of a noncurrent asset and will be refinanced on the same basis as the commercial paper and, therefore, it would also be excluded from current liabilities (see paragraph [470-10-45-13](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-13)). ##### [470-10-55-32](https://asc.understandingaccounting.org/asc/470/10/#470-10-55-32) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:39.266Z to 2026-09-10T00:30:39.266Z Record version: sha256:78c597319e15301b4275af6130e95885e8da2ff9e18ee831b007317b8777a28d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following are two methods of presenting liabilities in Entity A's balance sheet at December 31, 19X5, assuming the Entity intends to refinance the 6 percent debt maturing in February 19X6 and the 9 percent notes payable maturing in July 19X6 but has not met the conditions required by this Subtopic to exclude those obligations from current liabilities. - ![](https://asc.understandingaccounting.org/asc-img/GUID-4118E428-5D95-480B-B90A-8265A0D73596-low.gif) Alternative 1 "December 31, 19X5" Current Liabilities: Accounts payable and accruals " $10,000,000 " "Notes payable, due July 19X6" " 3,000,000 " 6% debt due February 19X6 " 5,000,000 " Total Current Liabilities " 18,000,000 " Long-Term Debt " 25,000,000 " Total Liabilities " $43,000,000 " Alternative 2 "December 31, 19X5" Current Liabilities: Accounts payable and accruals " $10,000,000 " Short-term debt expected to be refinanced: "Notes payable, due July 19X6" " $3,000,000 " 6% debt due February 19X6 " 5,000,000 " " 8,000,000 " Total Current Liabilities " 18,000,000 " Long-Term Debt " 25,000,000 " Total Liabilities " $43,000,000 " ##### [470-10-55-33](https://asc.understandingaccounting.org/asc/470/10/#470-10-55-33) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:39.266Z to 2026-09-10T00:30:39.266Z Record version: sha256:dcee7d80e532ccff5f4fe7072866481056efd47cf3e7cddf2899ffca15810052 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraph [470-10-45-15](https://asc.understandingaccounting.org/asc/470/10/#470-10-45-15). ##### [470-10-55-34](https://asc.understandingaccounting.org/asc/470/10/#470-10-55-34) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:39.266Z to 2026-09-10T00:30:39.266Z Record version: sha256:eeb543ed392e42b979ab2f4e65649fd438d2a266fc80b71a7b32224104961f7c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example has the following assumptions: 1. a An Entity has issued $3,000,000 of short-term commercial paper during the year to finance construction of a plant. 2. b At June 30, 1976, the Entity's fiscal year end, the Entity intends to refinance the commercial paper by issuing long-term debt. However, because the Entity temporarily has excess cash, in July 1976 it liquidates $1,000,000 of the commercial paper as the paper matures. 3. c In August 1976, the Entity completes a $6,000,000 long-term debt offering. 4. d Later during the month of August, it issues its June 30, 1976, financial statements. 5. e The proceeds of the long-term debt offering are to be used to do all of the following: 1. 1 Replenish $1,000,000 in working capital 2. 2 Pay $2,000,000 of commercial paper as it matures in September 1976 3. 3 Pay $3,000,000 of construction costs expected to be incurred later that year to complete the plant. ##### [470-10-55-35](https://asc.understandingaccounting.org/asc/470/10/#470-10-55-35) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:39.266Z to 2026-09-10T00:30:39.266Z Record version: sha256:a978044a5498ff43e56931d7ef866a7df1bc756a3e541348178c4e0a63dfa06c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The $1,000,000 of commercial paper liquidated in July would be classified as a current liability in the Entity's balance sheet at June 30, 1976. The $2,000,000 of commercial paper liquidated in September 1976 but refinanced by the long-term debt offering in August 1976 would be excluded from current liabilities in balance sheets at the end of June 1976, July 1976, and August 1976. It should be noted that the existence of a financing agreement at the date the financial statements are issued or are available to be issued (as discussed in Section 855-10-25) rather than a completed financing at that date would not change these classifications. ##### [470-10-55-36](https://asc.understandingaccounting.org/asc/470/10/#470-10-55-36) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:39.266Z to 2026-09-10T00:30:39.266Z Record version: sha256:fde0ba72395151a03a2da5ee6dcfb8fe1c6ca36cf4143ee9c0d8548aa3d3138f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. At the end of August 1976, $2,000,000 of cash would be excluded from current assets or, if included in current assets, a like amount of debt would be classified as a current liability. Source downloaded (UTC): 2026-09-10T00:30:41.119Z to 2026-09-10T00:30:41.119Z Record version: sha256:181f2ef32abcae3a83c3bdec4f3d64db2118ab7803b4b86e4cb37d41fd57298b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 470-10-60: 60 Relationships [Read section](https://asc.understandingaccounting.org/asc/470/10/#60-relationships) SEC content: no #### Balance Sheet ##### [470-10-60-1](https://asc.understandingaccounting.org/asc/470/10/#470-10-60-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:41.119Z to 2026-09-10T00:30:41.119Z Record version: sha256:365562160635ca16660b56a43334eeebb3ce8623c64d683d4d9aa0a3bca3cb77 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For classification guidance on a liability representing the underfunded status of a single-employer defined benefit postretirement plan, see Subtopic 715-20. ##### [470-10-60-2](https://asc.understandingaccounting.org/asc/470/10/#470-10-60-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:41.119Z to 2026-09-10T00:30:41.119Z Record version: sha256:bb68f6e6e28a8eb3262c83d32ad840eff386af0702d96a3e2a390d9131f46845 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2020-06](https://asc.understandingaccounting.org/updates/asu-2020-06/). #### Interest ##### [470-10-60-3](https://asc.understandingaccounting.org/asc/470/10/#470-10-60-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:41.119Z to 2026-09-10T00:30:41.119Z Record version: sha256:9d87c0d01a7f1f65d9f8b9ffaf0f2c7780eb8a8e722bfed279e24411b2528451 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on the appropriate accounting if the face amount of a note does not reasonably represent the present value of the consideration given or received in the exchange, see paragraphs [835-30-05-2 through 05-3](https://asc.understandingaccounting.org/asc/835/30/#835-30-05-2) . #### Leases ##### [470-10-60-4](https://asc.understandingaccounting.org/asc/470/10/#470-10-60-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:41.119Z to 2026-09-10T00:30:41.119Z Record version: sha256:175d9bb72826fb4916f12e56e6c91d8754ddce563f834129634ff79947f09ce8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on the classification of obligations under [leases](https://asc.understandingaccounting.org/glossary/l/#lease "A contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration."), see paragraphs [842-20-45-1 through 45-4](https://asc.understandingaccounting.org/asc/842/20/#842-20-45-1) . Source downloaded (UTC): 2026-09-10T00:30:46.022Z to 2026-09-10T00:30:46.022Z Record version: sha256:f48a63feb4d4eff368b383626154ce3a2a26ca1c5aabf18dd94a632eb31570fb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 470-10-S00: SEC 00 Status [Read section](https://asc.understandingaccounting.org/asc/470/10/#sec-00-status) SEC content: yes ##### [470-10-S00-1](https://asc.understandingaccounting.org/asc/470/10/#470-10-S00-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:46.022Z to 2026-09-10T00:30:46.022Z Record version: sha256:731dbad4f98c08c1a8aeae8ce5482c5ea01e60768531f5bfe5e997e4a9d12fd1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Annual ReportSupersededAccounting Standards Update No. 2020-0910/22/2020
Finance SubsidiarySupersededAccounting Standards Update No. 2020-0910/22/2020
Full and Unconditional GuaranteeSupersededAccounting Standards Update No. 2020-0910/22/2020
Minor SubsidiarySupersededAccounting Standards Update No. 2020-0910/22/2020
Operating SubsidiarySupersededAccounting Standards Update No. 2020-0910/22/2020
Parent Company with No Independent Assets or OperationsSupersededAccounting Standards Update No. 2020-0910/22/2020
Quarterly ReportSupersededAccounting Standards Update No. 2020-0910/22/2020
Wholly Owned SubsidiarySupersededAccounting Standards Update No. 2020-0910/22/2020
470-10-S50-6 through S50-8
AmendedAccounting Standards Update No. 2020-0910/22/2020
470-10-S50-9 through S50-11
SupersededAccounting Standards Update No. 2020-0910/22/2020
470-10-S65-1AddedAccounting Standards Update No. 2020-0910/22/2020
470-10-S99-1AmendedAccounting Standards Update No. 2020-0910/22/2020
470-10-S99-1AmendedAccounting Standards Update No. 2019-0707/26/2019
470-10-S99-1AmendedAccounting Standards Update No. 2010-2108/02/2010
470-10-S99-1AAddedAccounting Standards Update No. 2020-0910/22/2020
470-10-S99-1BAddedAccounting Standards Update No. 2020-0910/22/2020
470-10-S99-3AmendedAccounting Standards Update No. 2012-0308/27/2012
Source downloaded (UTC): 2026-09-10T00:30:48.723Z to 2026-09-10T00:30:48.723Z Record version: sha256:ad5ada039e6e3c58dd4b9bbf6a06a0c4a581d683ac40283edecd4b91286018e8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 470-10-S15: SEC 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/470/10/#sec-15-scope-and-scope-exceptions) SEC content: yes #### Compensating Balance Arrangements ##### [470-10-S15-1](https://asc.understandingaccounting.org/asc/470/10/#470-10-S15-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:48.723Z to 2026-09-10T00:30:48.723Z Record version: sha256:eedf955f452c0ebc6d10f125b6236b38c39db9ec8ec4a2cef9091d4ad944f648 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [210-10-S99-2](https://asc.understandingaccounting.org/asc/210/10/#210-10-S99-2), SAB Topic 6.H.1, for SEC Staff views on the applicability of the disclosure requirements pertaining to compensating balances and short-term borrowing arrangements. Source downloaded (UTC): 2026-09-10T00:30:51.674Z to 2026-09-10T00:30:51.674Z Record version: sha256:d9a02ab5e35426adb0c6d0c56fbd35fe007750118e892b448f3967cabfc2f475 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 470-10-S35: SEC 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/470/10/#sec-35-subsequent-measurement) SEC content: yes #### Debt Issue Costs in Conjunction with a Business Combination ##### [470-10-S35-1](https://asc.understandingaccounting.org/asc/470/10/#470-10-S35-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:51.674Z to 2026-09-10T00:30:51.674Z Record version: sha256:b6537c8977f44d1479fcc68b4c6efdd36a856164f979d80dad4025c76a8f7693 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [340-10-S99-2](https://asc.understandingaccounting.org/asc/340/10/#340-10-S99-2), SAB Topic 2.A.6, Question 2, for SEC Staff views on the amortization of debt issue costs for interim "bridge financing." Source downloaded (UTC): 2026-09-10T00:30:53.362Z to 2026-09-10T00:30:53.362Z Record version: sha256:dd20a52dc8e7f53c06ede78498eb9622a2c86bf63d9d8b6dd05f39581ddbbf2c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 470-10-S45: SEC 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/470/10/#sec-45-other-presentation-matters) SEC content: yes #### Subsidiary's Loan Payable ##### [470-10-S45-1](https://asc.understandingaccounting.org/asc/470/10/#470-10-S45-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:53.362Z to 2026-09-10T00:30:53.362Z Record version: sha256:f10d0b1622dc5a9356bd3b3bbed6433d08523517b15fde5ae54adc79ec316867 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [470-10-S99-4](https://asc.understandingaccounting.org/asc/470/10/#470-10-S99-4), SEC Observer Comment: Classification of Subsidiary's Loan Payable in Consolidated Balance Sheet when Subsidiary's and Parent's Fiscal Years Differ, for SEC Staff views on the presentation of such loans. #### Long-Term Debt ##### [470-10-S45-2](https://asc.understandingaccounting.org/asc/470/10/#470-10-S45-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:53.362Z to 2026-09-10T00:30:53.362Z Record version: sha256:c94964e3e56aedd057b91dc53cc85369d41c9972762a61842b6c6a9f081d5624 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [210-10-S99-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-S99-1), Regulation S-X Rule 5-02.22, for presentation requirements for bonds, mortgages, and other long-term debt. See paragraph [210-10-S99-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-S99-1), Regulation S-X Rule 5-02.23, for the presentation of long-term indebtedness to related parties. #### Construction Loans ##### [470-10-S45-3](https://asc.understandingaccounting.org/asc/470/10/#470-10-S45-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:53.362Z to 2026-09-10T00:30:53.362Z Record version: sha256:213e1e1a73dca9353b0ee0e50baf082ca3704c6de844f3be8e03f875d185013d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [470-10-S99-3](https://asc.understandingaccounting.org/asc/470/10/#470-10-S99-3), SAB Topic 6.H.2, for SEC Staff views on the classification of revolving loans pertaining to construction of long-term projects. #### Subordinated Debt ##### [470-10-S45-4](https://asc.understandingaccounting.org/asc/470/10/#470-10-S45-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:53.362Z to 2026-09-10T00:30:53.362Z Record version: sha256:f777d095f472da9a2eccda7f12347e98effb55309fef9ef193ef5ed45ad987ab Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [470-10-S99-2](https://asc.understandingaccounting.org/asc/470/10/#470-10-S99-2), SAB Topic 4.A, for SEC Staff views on the presentation of subordinated debt. Source downloaded (UTC): 2026-09-10T00:30:56.466Z to 2026-09-10T00:30:56.466Z Record version: sha256:bc3b370bbeb0d0ea0cd1815ba76d1f2e6911a501df18d17e78c83042db18b94b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 470-10-S50: SEC 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/470/10/#sec-50-disclosure) SEC content: yes #### Disclosure of Long-Term Obligations ##### [470-10-S50-1](https://asc.understandingaccounting.org/asc/470/10/#470-10-S50-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:56.466Z to 2026-09-10T00:30:56.466Z Record version: sha256:1ed031fb1cdaa7031fd8e052dd6355636ce80191f38a8473c1b383920f3e8b5e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [210-10-S99-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-S99-1), Regulation S-X Rule 5-02.22, for disclosure requirements for bonds, mortgages, and other long-term debt. ##### [470-10-S50-2](https://asc.understandingaccounting.org/asc/470/10/#470-10-S50-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:56.466Z to 2026-09-10T00:30:56.466Z Record version: sha256:cafb11061a81727fcb1ae3c431c187a3b2ba9fb9b15b8a18218e182fdf324eee Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [235-10-S99-1](https://asc.understandingaccounting.org/asc/235/10/#235-10-S99-1), Regulation S-X Rule 4-08(f), for disclosure requirements for changes in bonds, mortgages, and other long-term debt. #### Short-Term Obligations ##### [470-10-S50-3](https://asc.understandingaccounting.org/asc/470/10/#470-10-S50-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:56.466Z to 2026-09-10T00:30:56.466Z Record version: sha256:4fe965bfac83b24e2882286ebb3ef0c50466c637c5ae23cd0684ede4a29e3e7b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [210-10-S99-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-S99-1), Regulation S-X Rule 5-02.19(b), for disclosure requirements pertaining to short-term obligations. #### Defaults ##### [470-10-S50-4](https://asc.understandingaccounting.org/asc/470/10/#470-10-S50-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:56.466Z to 2026-09-10T00:30:56.466Z Record version: sha256:b91853be37e75e2181c7986694fe94784649777ef6a8536e06cd8e380635d1fe Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [235-10-S99-1](https://asc.understandingaccounting.org/asc/235/10/#235-10-S99-1), Regulation S-X Rule 4-08(c), for disclosure requirements relating to defaults. #### Repurchase and Reverse Repurchase Agreements ##### [470-10-S50-5](https://asc.understandingaccounting.org/asc/470/10/#470-10-S50-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:56.466Z to 2026-09-10T00:30:56.466Z Record version: sha256:7804cbc3a280a3ed503b8349edab964a1396d51c6aec47ea6b6ec9eb1bfc3a3b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [235-10-S99-1](https://asc.understandingaccounting.org/asc/235/10/#235-10-S99-1), Regulation S-X Rule 4-08, for disclosure requirements for repurchase and reverse repurchase agreements. #### Guarantors and Issuers of Guaranteed Securities Registered or Being Registered ##### [470-10-S50-6](https://asc.understandingaccounting.org/asc/470/10/#470-10-S50-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:56.466Z to 2026-09-10T00:30:56.466Z Record version: sha256:499e614634830d584f1f77200a73c5bc4dd3f3240a0f91dc1019d34d4c26473d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [470-10-S99-1](https://asc.understandingaccounting.org/asc/470/10/#470-10-S99-1), Regulation S-X Rule 3-10, for requirements applicable to financial statements of guarantors and issuers of guaranteed securities registered or being registered. ##### [470-10-S50-7](https://asc.understandingaccounting.org/asc/470/10/#470-10-S50-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:56.466Z to 2026-09-10T00:30:56.466Z Record version: sha256:fec3e117c5aff51b25ed3356a7cc0a71b28a840f0c848eaa3c8570d4002f4280 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [470-10-S99-1A](https://asc.understandingaccounting.org/asc/470/10/#470-10-S99-1A), Regulation S-X Rule 13-01, for disclosure requirements about guarantors and issuers of guaranteed securities registered or being registered. #### Affiliates Whose Securities Collateralize Securities Registered or Being Registered ##### [470-10-S50-8](https://asc.understandingaccounting.org/asc/470/10/#470-10-S50-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:56.466Z to 2026-09-10T00:30:56.466Z Record version: sha256:77816ba322a8f1f7d9958687b7923586f1a8648cbc62e6c9a8e97e72ad86c02e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [470-10-S99-1B](https://asc.understandingaccounting.org/asc/470/10/#470-10-S99-1B), Regulation S-X Rule 13-02, for disclosure requirements about a registrant's affiliates whose securities collateralize any class of securities registered or being registered. ##### [470-10-S50-9](https://asc.understandingaccounting.org/asc/470/10/#470-10-S50-9) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:56.466Z to 2026-09-10T00:30:56.466Z Record version: sha256:c2867736431383819251c85e53618a8f20aeb22698b9f0d18d0ebeaffd303224 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2020-09](https://asc.understandingaccounting.org/updates/asu-2020-09/). ##### [470-10-S50-10](https://asc.understandingaccounting.org/asc/470/10/#470-10-S50-10) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:56.466Z to 2026-09-10T00:30:56.466Z Record version: sha256:6afcb3f4836d338d2e4262e3c285b8064d62febe57f6516d5ab2e5e89b0fd402 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2020-09](https://asc.understandingaccounting.org/updates/asu-2020-09/). ##### [470-10-S50-11](https://asc.understandingaccounting.org/asc/470/10/#470-10-S50-11) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:56.466Z to 2026-09-10T00:30:56.466Z Record version: sha256:4170ff4c8f8b9734e5e7417d782a087ce055ce14c7fc9a922fae647c0c31d04b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2020-09](https://asc.understandingaccounting.org/updates/asu-2020-09/). Source downloaded (UTC): 2026-09-10T00:30:58.375Z to 2026-09-10T00:30:58.375Z Record version: sha256:5367736e46c5566141a9e325b36da6bd02d1f2e7bc5fe16d4b0175bce445ccbe Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 470-10-S65: SEC 65 Transition and Open Effective Date Information [Read section](https://asc.understandingaccounting.org/asc/470/10/#sec-65-transition-and-open-effective-date-information) SEC content: yes ##### [470-10-S65-1](https://asc.understandingaccounting.org/asc/470/10/#470-10-S65-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:30:58.375Z to 2026-09-10T00:30:58.375Z Record version: sha256:06713fabebd38f4a66023ca8c1041ffdb66065fa0477f93d4b02da6b982b3abd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 08/19/2021 after the end of the transition period stated in SEC Release No. 33-10762, Financial Disclosures about Guarantors and Issuers of Guaranteed Securities and Affiliates Whose Securities Collateralize a Registrant's Securities. Source downloaded (UTC): 2026-09-10T00:31:04.047Z to 2026-09-10T00:31:04.047Z Record version: sha256:7c601dc9f634878bcdd4e2890e39f620df58e6fbf076e75b7f83d33f7b76ef01 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 470-10-S99: SEC 99 SEC Materials [Read section](https://asc.understandingaccounting.org/asc/470/10/#sec-99-sec-materials) SEC content: yes #### SEC Rules, Regulations, and Interpretations ##### [470-10-S99-1](https://asc.understandingaccounting.org/asc/470/10/#470-10-S99-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:04.047Z to 2026-09-10T00:31:04.047Z Record version: sha256:d79000792243d4d48f523e86fb117224239b81f507a57684901c5e48ecac4103 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of Regulation S-X Rule 3-10, Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered (17 CFR 210.3-10). - (a) If an issuer or guarantor of a guaranteed security that is registered or being registered is required to file financial statements required by Regulation S-X with respect to the guarantee or guaranteed security, such financial statements may be omitted if the issuer or guarantor is a consolidated subsidiary of the parent company, the parent company's consolidated financial statements have been filed, and the conditions in paragraphs (a)(1) and (2) of this section have been met: - (1) The guaranteed security is debt or debt-like; and - (i) The parent company issues the security or co-issues the security, jointly and severally, with one or more of its consolidated subsidiaries; or - (ii) A consolidated subsidiary issues the security or co-issues the security with one or more other consolidated subsidiaries of the parent company, and the security is guaranteed fully and unconditionally by the parent company; and - (2) The parent company provides the disclosures specified in §210.13-01. - (b) For the purposes of this section and §210.13-01: - (1) The “parent company” is the entity that: - (i) Is an issuer or guarantor of the guaranteed security; - (ii) Is, or as a result of the subject Securities Act registration statement will be, an Exchange Act reporting company; and - (iii) Consolidates each subsidiary issuer and/or subsidiary guarantor of the guaranteed security in its consolidated financial statements. - (2) A security is “debt or debt-like” if it has the following characteristics: - (i) The issuer has a contractual obligation to pay a fixed sum at a fixed time; and - (ii) Where the obligation to make such payments is cumulative, a set amount of interest must be paid. - _Note 1 to paragraph (b)(2)._ Neither the form of the security nor its title will determine whether a security is debt or debt-like. Instead, the substance of the obligation created by the security will be determinative. - _Note 2 to paragraph (b)(2)._ The phrase “set amount of interest” is not intended to mean “fixed amount of interest.” Floating and adjustable rate securities, as well as indexed securities, may meet the criteria specified in paragraph (b)(2)(ii) of this section as long as the payment obligation is set in the debt instrument and can be determined from objective indices or other factors that are outside the discretion of the obligor. - (3) A guarantee is “full and unconditional,” if, when an issuer of a guaranteed security has failed to make a scheduled payment, the guarantor is obligated to make the scheduled payment immediately and, if it does not, any holder of the guaranteed security may immediately bring suit directly against the guarantor for payment of all amounts due and payable. - \[65 FR 51707, Aug. 24, 2000, as amended at 73 FR 952, Jan. 4, 2008; 73 FR 1009, Jan. 4, 2008; 74 FR 18615, Apr. 23, 2009; 85 FR 21999, Apr. 20, 2020\] ##### [470-10-S99-1A](https://asc.understandingaccounting.org/asc/470/10/#470-10-S99-1A) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:04.047Z to 2026-09-10T00:31:04.047Z Record version: sha256:21bd756e842e7c874bf1c39fe20f9bef74acb9479c4543ed3221aaa04706596a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of Regulation S-X Rule 13-01, Guarantors and Issuers of Guaranteed Securities Registered or Being Registered (17 CFR 210.13-01). - - (a) For each guaranteed security subject to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and for each guaranteed security the offer and sale of which is being registered under the Securities Act of 1933, for which the registrant is the parent company (as that term is defined in §210.3-10(b)(1)) of one or more subsidiaries that issue or guarantee the guaranteed security, provide the following disclosures to the extent material: - (1) A description of the issuers and guarantors of the guaranteed security; - (2) A description of the terms and conditions of the guarantees, and how payments to holders of the guaranteed security may be affected by the composition of and relationships among the issuers, guarantors, and subsidiaries of the parent company that are not issuers or guarantors of the guaranteed security; - (3) A description of other factors that may affect payments to holders of the guaranteed security, such as contractual or statutory restrictions on dividends, guarantee enforceability, or the rights of a noncontrolling interest holder; - (4) Summarized financial information as specified in §210.1-02(bb)(1) of each issuer and guarantor of the guaranteed security as follows, with an accompanying note that briefly describes the basis of presentation: - (i) The summarized financial information of each such issuer and guarantor consolidated in the parent company's consolidated financial statements may be presented on a combined basis with the summarized financial information of the parent company; - (ii) Intercompany balances and transactions between issuers and guarantors whose summarized financial information is presented on a combined basis shall be eliminated; - (iii) The summarized financial information shall exclude subsidiaries that are not issuers or guarantors. An issuer's or guarantor's investment in a subsidiary that is not an issuer or guarantor shall not be presented. An issuer's or guarantor's amounts due from, amounts due to, and transactions with any of the following shall be presented in separate line items: - (A) Subsidiaries that are not issuers or guarantors; and - (B) Related parties; - (iv) If the information provided in response to the requirements of this section (e.g., factors that may affect payments to holders of the guaranteed security) is applicable to one or more, but not all, issuers and/or guarantors, separately disclose the summarized financial information applicable to those issuers and/or guarantors. In limited circumstances (i.e., where the separate financial information applicable to those issuers and/or guarantors can be easily explained and understood), narrative disclosure may be provided in lieu of the separate summarized financial information otherwise required by this paragraph (a)(4)(iv); - (v) Disclose this summarized financial information as of and for the most recently ended fiscal year and year-to-date interim period included in the parent company's consolidated financial statements; and - (vi) Notwithstanding that a parent company may omit this summarized financial information if not material, it may also be omitted if one of the following in paragraphs (a)(4)(vi)(A) through (D) of this section is true and disclosed. However, paragraph (a)(4)(vi)(A) does not apply if separate disclosure of summarized financial information applicable to one or more, but not all, issuers and/or guarantors is required by paragraph (a)(4)(iv) of this section. For the purposes of this section, a finance subsidiary is a subsidiary that has no assets or operations other than those related to the issuance, administration and repayment of the security being registered and any other securities guaranteed by its parent company: - (A) The assets, liabilities and results of operations of the combined issuers and guarantors of the guaranteed security are not materially different than corresponding amounts presented in the consolidated financial statements of the parent company; - (B) The combined issuers and guarantors, excluding investments in subsidiaries that are not issuers or guarantors, have no material assets, liabilities or results of operations; - (C) The issuer is a finance subsidiary of the parent company, the parent company has fully and unconditionally guaranteed the security, and no other subsidiary of the parent company guarantees the security; or - (D) The issuer is a finance subsidiary that co-issued the security, jointly and severally, with the parent company, and no other subsidiary of the parent company guarantees the security; - (5) In a Securities Act registration statement filed in connection with the offer and sale of the guaranteed security, if the parent company acquired a significant business after the date of the parent company's most recent balance sheet included in its consolidated financial statements and the acquired business, one or more of the acquired business's subsidiaries, or the acquired business and one or more of its subsidiaries are issuers or guarantors of the guaranteed securities, disclose pre-acquisition summarized financial information as specified in paragraph (a)(4) of this section for each such issuer or guarantor. The acquired business is significant if it meets any of the conditions specified in the definition of significant subsidiary in §210.1-02(w), substituting 20 percent for 10 percent each place it appears therein, based on a comparison of the most recent annual financial statements of the acquired business and the parent company's most recent annual consolidated financial statements filed at or prior to the date of acquisition. The determination of whether a business has been acquired shall be made in accordance with the guidance set forth in §210.11-01(d). Acquisitions of a group of related businesses shall be treated as if they are a single business acquisition for purposes of this comparison. The determination of whether a group of businesses are related shall be made in a manner consistent with §210.3-05(a)(3); - (6) Any financial and narrative information about each guarantor if the information would be material for investors to evaluate the sufficiency of the guarantee; and - (7) Sufficient information so as to make the financial and non-financial information presented not misleading. - (b) The parent company may elect to provide the disclosures required by this section in a footnote to its consolidated financial statements or alternatively, in management's discussion and analysis of financial condition and results of operations described in §229.303 (Item 303 of Regulation S-K) of this chapter. If not otherwise included in the consolidated financial statements or in management's discussion and analysis of financial condition and results of operations, the parent company must include the disclosures in its prospectus immediately following “Risk Factors,” if any, or otherwise, immediately following pricing information described in §229.105 (Item 105 of Regulation S-K) of this chapter. ##### [470-10-S99-1B](https://asc.understandingaccounting.org/asc/470/10/#470-10-S99-1B) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:04.047Z to 2026-09-10T00:31:04.047Z Record version: sha256:7cbcb6f3deeb9d6346480ce204b0cb4329a316c4adc5833ac6e197ecb6519cc1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of Regulation S-X Rule 13-02, Affiliates Whose Securities Collateralize Securities Registered or Being Registered (17 CFR 210.13-02). - The requirements of this section shall apply to each security registered or being registered that is issued on or after January 4, 2021, and to each registered security issued and outstanding before January 4, 2021, for which the registrant had prior to that date provided the financial statements specified in §210.3-16. - (a) For each security subject to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and for each security the offer and sale of which is being registered under the Securities Act of 1933, that is collateralized by a security of the registrant's affiliate or affiliates, provide the following disclosures to the extent material: - (1) A description of the securities pledged as collateral and the affiliates whose securities are pledged as collateral; - (2) A description of the terms and conditions of the collateral arrangement, including the events or circumstances that would require delivery of the collateral; - (3) A description of the trading market for the affiliate's security pledged as collateral or a statement that there is no market; - (4) Summarized financial information as specified in §210.1-02(bb)(1) of each affiliate whose securities are pledged as collateral as follows, with an accompanying note that briefly describes the basis of presentation: - (i) The summarized financial information of each such affiliate consolidated in the registrant's financial statements may be presented on a combined basis; - (ii) Intercompany balances and transactions between affiliates whose summarized financial information is presented on a combined basis shall be eliminated; - (iii) An affiliate's amounts due from, amounts due to, and transactions with any of the following shall be presented in separate line items: - (A) The registrant; - (B) Any of the registrant's subsidiaries not included in the summarized financial information of the affiliate(s); and - (C) Related parties; - (iv) If the information provided in response to the requirements of this section (e.g., the trading market for the affiliate's security pledged as collateral or a statement that there is no market) is applicable to one or more, but not all, affiliates, separately disclose the summarized financial information applicable to those affiliates. In limited circumstances (i.e., where the separate financial information applicable to those affiliates can be easily explained and understood), narrative disclosure may be provided in lieu of the separate summarized financial information otherwise required by this paragraph (a)(4)(iv); - (v) Disclose this summarized financial information as of and for the most recently ended fiscal year and year-to-date interim period included in the registrant's consolidated financial statements; and - (vi) Notwithstanding that a registrant may omit this summarized financial information if not material, it may also be omitted if one of the following in paragraph (a)(4)(vi)(A) or (B) of this section is true and disclosed. However, paragraph (a)(4)(vi)(A) does not apply if separate disclosure of summarized financial information applicable to one or more, but not all, affiliates is required by paragraph (a)(4)(iv) of this section: - (A) The assets, liabilities and results of operations of the combined affiliates whose securities are pledged as collateral are not materially different than the corresponding amounts presented in the consolidated financial statements of the registrant; or - (B) The combined affiliates whose securities are pledged as collateral have no material assets, liabilities or results of operations; - (5) In a Securities Act registration statement filed in connection with the offer and sale of the collateralized security, if the registrant acquired a significant business after the date of the registrant's most recent balance sheet included in its consolidated financial statements and the acquired business, one or more of the acquired business's subsidiaries, or the acquired business and one or more of its subsidiaries are affiliates whose securities collateralize the registrant's collateralized security, disclose pre-acquisition summarized financial information as specified in paragraph (a)(4) of this section for each such affiliate. The acquired business is significant if it meets any of the conditions specified in the definition of significant subsidiary in §210.1-02(w), substituting 20 percent for 10 percent each place it appears therein, based on a comparison of the most recent annual financial statements of the acquired business and the registrant's most recent annual consolidated financial statements filed at or prior to the date of acquisition. The determination of whether a business has been acquired shall be made in accordance with the guidance set forth in §210.11-01(d). Acquisitions of a group of related businesses shall be treated as if they are a single business acquisition for purposes of this comparison. The determination of whether a group of businesses are related shall be made in a manner consistent with §210.3-05(a)(3); - (6) Any financial and narrative information about each such affiliate if the information would be material for investors to evaluate the pledge of the affiliate's securities as collateral; and - (7) Sufficient information so as to make the financial and non-financial information presented not misleading. - (b) The registrant may elect to provide the disclosures required by this section in a footnote to its consolidated financial statements or alternatively, in management's discussion and analysis of financial condition and results of operations described in §229.303 (Item 303 of Regulation S-K) of this chapter. If not otherwise included in the consolidated financial statements or in management's discussion and analysis of financial condition and results of operations, the registrant must include the disclosures in its prospectus immediately following “Risk Factors,” if any, or otherwise, immediately following pricing information described in §229.105 (Item 105 of Regulation S-K) of this chapter. - \[85 FR 22001, Apr. 20, 2020\] #### SEC Staff Guidance ##### [470-10-S99-2](https://asc.understandingaccounting.org/asc/470/10/#470-10-S99-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:04.047Z to 2026-09-10T00:31:04.047Z Record version: sha256:682fbf7639799fb08427e1a08c73628446f9ecab5464e8bbcb84a6409600566a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of SAB Topic 4.A, Subordinated Debt. - Facts: Company E proposes to include in its registration statement a balance sheet showing its subordinate debt as a portion of stockholders' equity. - Question: Is this presentation appropriate? - Interpretive Response: Subordinated debt may not be included in the stockholders' equity section of the balance sheet. Any presentation describing such debt as a component of stockholders' equity must be eliminated. Furthermore, any caption representing the combination of stockholders' equity and only subordinated debts must be deleted. ##### [470-10-S99-3](https://asc.understandingaccounting.org/asc/470/10/#470-10-S99-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:04.047Z to 2026-09-10T00:31:04.047Z Record version: sha256:0dd2813225bb1198e415848a10a87dfe9fc00b0819cfdb5fb8780bb34c0a2db2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of SAB Topic 6.H.2, Classification of Short-term Obligations—Debt Related to Long-Term Projects. - Facts: Companies engaging in significant long-term construction programs frequently arrange for revolving cover loans which extend until the completion of long-term construction projects. Such revolving cover loans are typically arranged with substantial financial institutions and typically have the following characteristics: - 1\. A firm long-term mortgage commitment is obtained for each project. - 2\. Interest rates and terms are in line with the company's normal borrowing arrangements. - 3\. Amounts are equal to the expected full mortgage amount of all projects. - 4\. The company may draw down funds at its option up to the maximum amount of the agreement. - 5\. The company uses short-term interim construction financing (commercial paper, bank loans, etc.) against the revolving cover loan. Such indebtedness is rolled over or drawn down on the revolving cover loan at the company's option. The company typically has regular bank lines of credit, but these generally are not legally enforceable. - Question: Under FASB ASC Subtopic 470-10, Debt—Overall, will the classification of loans such as described above as long-term be acceptable? - Interpretive Response: Where such conditions exist providing for a firm commitment throughout the construction program as well as a firm commitment for permanent mortgage financing, and where there are no contingencies other than the completion of construction, the guideline criteria are met and the borrowing under such a program should be classified as long-term with appropriate disclosure. ##### [470-10-S99-4](https://asc.understandingaccounting.org/asc/470/10/#470-10-S99-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:04.047Z to 2026-09-10T00:31:04.047Z Record version: sha256:39b37961c3350fc3b740985276b479203312b504cfd5e9b787263b3e572369dd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of SEC Observer Comment: Classification of Subsidiary's Loan Payable in Consolidated Balance Sheet when Subsidiary's and Parent's Fiscal Years Differ. - Issues periodically occur related to classification of a subsidiary's loan payable in a consolidated balance sheet when the subsidiary's and parent's fiscal years differ. For example, assume that a consolidated balance sheet prepared as of February 29, 1988, comprised of the parent company's balance sheet as of that date and the subsidiary's balance sheet as of December 31, 1987. The subsidiary's balance sheet included a material loan payable to a bank due January 31, 1989. The SEC staff would expect the debt in this case to be classified as current because to do otherwise would result in a material misclassification.