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15.5 Balance sheet: classification—refinancing counterparty
Publication date: 28 Feb 2022
us IFRS & US GAAP guide
Differences in the guidance for accounting for certain refinancing arrangements may result in more debt classified as current under IFRS.
US GAAP | IFRS |
A short-term obligation may be excluded from current liabilities if the entity intends to refinance the obligation on a long-term basis and the intent to refinance on a long-term basis is supported by an ability to consummate the refinancing as demonstrated by meeting certain requirements. The refinancing does not necessarily need to be with the same counterparty. | If an entity expects and has the discretion to refinance or roll over an obligation for at least 12 months after the reporting period under an existing loan financing, it classifies the obligation as noncurrent, even if it would otherwise be due within a shorter period. In order for refinancing arrangements to be classified as noncurrent, the arrangement should be with the same counterparty. |
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