- CFA Exams
- CFA Level I Exam
- Study Session 8. Financial Reporting and Analysis (3)
- Reading 28. Non-current (Long-term) Liabilities
- Subject 5. Presentation and Disclosure of Long-Term Debt
CFA Practice Question
Which statement(s) is (are) true?
II. Companies must disclose the fair market value of their debt in footnotes.
I. Short-term obligations may be classified as long-term if the company intends to refinance them on a long-term basis and can demonstrate the ability to do so.
II. Companies must disclose the fair market value of their debt in footnotes.
Correct Answer: Both are true.
User Contributed Comments 2
| User | Comment |
|---|---|
| Horv | 1. Should be false. A company can claim intent however intent is not binding. This contradicts the previous question/answer. |
| swkimpo | "and can DEMONSTRATE the ability to do so" |