1. How do IFRS and U.S. GAAP differ with respect to the classification of debt that...

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Accounting

1. How do IFRS and U.S. GAAP differ with respect to theclassification of debt that is expected to be refinanced?
2. What is the difference between the use of the term contingentliability in U.S. GAAP and IFRS?
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Debts expected to be refinanced Per US GAAP Debts to be refinanced are excluded from current liabilities only if both of the following conditions are met a Company intends to refinance the obligation on a longterm basis b Company has the ability to refinance Company has the ability to refinance can be supported by one of the following a Issuance of longterm debt or equity securities after the balance sheet date but before the balance sheet is issued b Financing agreement to refinance shortterm debt on a longterm basis before the balance sheet is issued Financing agreement should satisfy all of the following a Within one year or operating cycle from balance sheet date agreement doe not expire agreement is not cancelable by lender b No violation of provisions at the balance sheet date and during the period between the balance sheet date and the date balance sheet is issued c Lender is financially capable of honoring the See Answer

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