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If you pay off long term debt before it becomes current, would you reclassify the balance as current?

It would be paid April 1 and I'm wondering if it would be appropriate to show it as current on the March 31 balance sheet.  Everything I've read states the classification is based on the terms of the debt and that would mean it would stay as long-term.  Can anyone point me to guidance that would say otherwise?

Answers

Topic Expert
Christie Jahn
Title: CFO
Company: Prime Investments & Development
(CFO, Prime Investments & Development) |

If you re-classify this debt; wouldn't in fact go back and change prior years? What is your goal in wanting to re-classify it?

Anonymous
(Corporate Controller) |

Since the debt would be paid before we issue the March financial statements, it seems inaccurate to classify it as long-term on March 31. I am not proposing reissuing 2012 year-end financials.

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