Long Term Liabilities
Code: 2200
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Account Information
| Financial Statement | Statement of Financial Position |
| Normal Balance | Credit |
Definition
Long term financial obligations
Sub-accounts
📐 IFRS vs US GAAP Accounting Treatment
IFRS
IAS 1
Presentation of Financial Statements
US GAAP
ASC 470
Debt
❓ Frequently Asked Questions
Q: What is the current portion of long-term debt?
A: It is the portion due for repayment within the next year, reclassified as a current liability on the balance sheet.
Q: How is interest on long-term loans calculated?
A: Using the effective interest rate method, which spreads borrowing costs over the loan's life.
Q: What is the difference between a long-term loan and a bond?
A: A loan comes from a single party (bank) with installment payments. A bond is issued to the public, traded, and usually repaid as a lump sum at maturity.