Summary of Statement No. 47
Disclosure of Long-Term Obligations (Issued 3/81)
Summary
This Statement requires that an enterprise disclose its
commitments under unconditional purchase obligations that are
associated with suppliers' financing arrangements. Such obligations
often are in the form of take-or-pay contracts and throughput
contracts. This Statement also requires disclosure of future
payments on long-term borrowings and redeemable stock. For
long-term unconditional purchase obligations that are associated
with suppliers' financing and are not recognized on purchasers'
balance sheets, the disclosures include the nature of the
obligation, the amount of the fixed and determinable obligation in
the aggregate and for each of the next five years, a description of
any portion of the obligation that is variable, and the purchases
in each year for which an income statement is presented. For
long-term unconditional purchase obligations that are associated
with suppliers' financing and are recognized on purchasers' balance
sheets, payments for each of the next five years shall be
disclosed. For long-term borrowings and redeemable stock, the
disclosures include maturities and sinking fund requirements (if
any) for each of the next five years and redemption requirements
for each of the next five years, respectively.