Summary of Statement No. 6
Classification of Short -Term Obligations Expected to Be
Refinanced--an amendment of ARB No. 43, Chapter
3A (Issued 5/75)
Summary
This Statement specifies that short-term obligations arising from
transactions in the normal course of business that are due in
customary terms shall be classified as current liabilities.
Short-term obligations expected to be refinanced on a long-term
basis shall be excluded from current liabilities only if the
enterprise intends to refinance the obligation on a long-term basis
and has the demonstrated ability to consummate the
refinancing.
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