| Obligation is firm's debt in present time which came up from past event Securities can be classified as a debt and will be recorded as a long-term debt based on one year of on firm's one operation cycle If the obligation completion is not supposed to use the current assets, the obligation should be classified as a long-term debt. The controversy of the issued obligation expense is treated as deferred charges and showed as an asset in balance sheet. Two ways of accounting treatment which are debt and equity, can result an issue which hasn't ended until now. But in this case, it is not allowed to unite debt and equity altogether as told by the entity theory. Besides on convertible bond issued, the controversy also appears at conversion. The issues that related with long-term debt besides issued expense and convertible debt are; short-term debt refund, debt's contingent, off balance sheet finance, and debt restructure. |