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Disclosure long-term debt in a financial statement

How do you analyze and report long-term debt? What disclosures are required relative to long-term debt?

Solution Preview

First examine the loan documents to compile the data which will be presented in the disclosures to the financial statements. You will want the total debt, the remaining principal balance, the interest rate, the due date of the loan, the payment amount and the collateral.

Then it is important to inquire about whether the loan has been sold, if it is current, if there have been any modifications, and if the collateral is still secured.

Next the note balance would be confirmed ...

Solution Summary

The 317 word solution presents a step by step procedure to gather the information required for disclosure in the financial statements, and further explains the types of information that are required to be disclosed.