Proposed ASU 2019-780 — Proposed Accounting Standards Update (Revised) 2019-780—Debt (Topic 470)—Simplifying the Classification of Debt in a Classified Balance Sheet (Current versus Noncurrent)

Stakeholders have told the Board that the guidance on determining whether debt should be classified as current or noncurrent in a classified balance sheet is overly complex. Topic 470, Debt, includes guidance on various narrow-scope, fact-specific debt transactions. The amendments in this proposed Update would replace the current, fact-specific guidance with an overarching, cohesive principle. The Board expects that the proposed amendments would reduce the cost and complexity for preparers and auditors when determining whether debt should be classified as current or noncurrent in the balance sheet, while providing more consistent and transparent information to financial statement users.

For more information, see the following:

Issued: September 12, 2019

Comments Due: October 28, 2019

The Exposure Draft identifies the Codification Sections that may be changed upon issuance of this guidance.

• 470-10-05-1
• 470-10-15-1
• 470-10-35-1
• 470-10-45-1
• 470-10-50-1
• 470-10-55-1
• 210-10-45-1
• 470-20-45-1
• 480-10-45-1
• 842-20-45-1
• 852-10-45-1
• 855-10-15-1