Working Draft — Proposed Private Enterprise Standards page 1 of 1 Long-term Debt, Section 3210 .01 This Section establishes standards for the presentation and disclosure of long-term debt. For additional standards, see either FINANCIAL INSTRUMENTS — DISCLOSURE AND PRESENTATION, Section 3861; or FINANCIAL INSTRUMENTS — DISCLOSURES, Section 3862, together with FINANCIAL INSTRUMENTS — PRESENTATION, Section 3863. .02 ♦ For bonds, debentures and similar securities, the title of the issue, the interest rate, maturity date, amount outstanding and the existence of sinking fund, redemption and conversion provisions should be disclosed. For mortgages and other long-term debt, similar particulars should be provided to the extent practical. .03 ♦ The aggregate amount of payments estimated to be required in each of the next five years to meet sinking fund or retirement provisions should be disclosed. .04 ♦ Any portion of long-term debt obligation payable within a year out of current funds should be included in current liabilities. .05 ♦ Any of the entity's own securities purchased and not yet cancelled should be shown separately as a deduction from the relative liability. .06 ♦ Where long-term debt is payable in a currency other than that in which the balance sheet is stated, the currency in which the long-term debt is payable should be indicated. .07 ♦ If any of the liabilities are secured, they should be stated separately and the fact that they are secured should be indicated (see also FINANCIAL INSTRUMENTS — DISCLOSURE AND PRESENTATION, paragraphs 3861.43A and .45(g), or FINANCIAL INSTRUMENTS — DISCLOSURES, paragraph 3862.14). .08 ♦ The details of any defaults of the entity in principal, interest, sinking fund or redemption provisions with respect to any outstanding obligation should be disclosed. When other defaults have occurred, it may be necessary to refer to them, particularly when they have not been subsequently waived (see FINANCIAL INSTRUMENTS — DISCLOSURES, paragraphs 3862.18-.19, when Section 3862 has been adopted). .09 ♦ The income statement should distinguish interest on indebtedness initially incurred for a term of more than one year.
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