13.5 Disclosures of Long-Term Debt

Long-term debt that matures within one year is usually reported as a current liability. Similarly, any principal portion of long-term debt due within one year of the reporting date is also to be reported as a current liability. In the absence of a refinancing agreement, any long-term debt that is refinanced is to be reported as a current liability as well. For ASPE, to report a long-term debt that is to be refinanced as a long-term debt, the refinancing agreement must be in place prior to the release of the financial statements. Whereas for IFRS, it must be in place prior to the reporting date of the financial statements.

Basic debt disclosures usually include:

• maturity date
• interest rate
• amounts due in each of the next five years
• assets pledged as security
• restrictions by creditors (restrictive covenants)
• call provisions
• conversion details
• information regarding liquidity and solvency risks of the company

Note that the reporting disclosures listed above have been simplified, as the disclosures required by IFRS are, in fact, quite extensive. The disclosures for ASPE are also quite robust but are slightly less extensive than for IFRS.