refinancing short term obligations

Question 1

what conditions must be met to reclassify

Answer 1

intent-proof in form of meeting minutes or written correspondence with financial institution
and ability- must occur between the balance sheet date and the date of financial statements are issued or available to be issued

Question 2

3 areas of ability

Answer 2

• actually refinance the liability on a long term basis, replacing current liability with a noncurrent one
• enter into a noncancelable refinancing agreement extending more than 1 year
• issue equity securities replacing the debt

Question 3

difference in IFRS

Answer 3

debtor firm must exhibit its ability to refinance the current liability by taking action or having an agreement in place BEFORE the balance sheet date.