On February 20, 2016, Dell corp. refinanced one debt (liability). The original due date of this...
On February 20, 2016, Dell corp. refinanced one debt (liability). The original due date of this debt was July 1, 2016, but the new date for this debt after refinancing is July 1, 2020.
The financial statement date for this company was December 31, 2015. The 2015 financial statement was issued on March 1, 2016.
Questions:
Under U.S. GAAP, is this debt classified current or noncurrent liability in 2015 balance sheet?
Under U.S. GAAP, is this debt classified current or noncurrent liability in 2016 balance sheet?
Under IFRS, is this debt classified current or noncurrent liability in 2015 balance sheet?
Under IFRS, is this debt classified current or noncurrent liability in 2016 balance sheet?
Homework Answers
In first condition , under GAAP debt that's refinanced after the balance sheet date but before the financial statement being issued its classified as non current liabilitie in 2015 balance sheet.
In the second condition it's also same because debt is refinanced before the financial statement being issued so it's also classified as non current liabilitie in 2016 balance sheet .
In 3rd condition under IFRS debt rules says settlement of the liability for at least 12 month after the reporting period then it's current but in question debt settle before the reporting period and for long term so it's classified as a non current liabilitie in 2015 and it's also same for 2016 balance sheet debt . It's also classified as non current liabilitie .
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