If a company intends to reﬁnance a liability that is due within one year, that liability should not be classiﬁed as a current liability.

Name: If a company intends to reﬁnance a liability that is due within one year, that liability should not be classiﬁed as a current liability.
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Question

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If a company has the intent and ability to refinance a short-term liability on a long-term basis, it can be classified as a non-current liability according to accounting standards.

If a Company Intends to Reﬁnance a Liability That Is