Communiquez avec les autres et partagez vos connaissances professionnelles

Inscrivez-vous ou connectez-vous pour rejoindre votre communauté professionnelle.

Suivre

Can an entity classify its debt or liability as a long term liability regardless of its maturity time?

user-image
Question ajoutée par Adeel Akhtar , Accounting/Finance Manager , Popular Homes
Date de publication: 2016/07/27
Shamik Sinha
par Shamik Sinha , SENIOR MANAGER AUDIT , M/S MADHUSUDHANA REDDY & CO, Chartered Accountants

It will affect the various Ratios in Financial Analysis. For example, if you classify an item which is actually a short term liability as a long term liability, the Current Ratio will be higher.

Amr Ibrahim
par Amr Ibrahim , Equity Research Analyst , Mubasher International

NO, THE shorter maturity should be classified as short term and the current portion of the debt should be classified as short, the equity is always long term

More Questions Like This