Debt classification: Back to the basics with 5 things you need to know

04/23/19

We take you back to the basics on balance sheet classification of debt―5 things you need to know.

Refinancing debt, but not quite sure how it will impact your balance sheet classification? The current guidance is complex, but help is on the way. Suzanne Stephani, PwC director and debt classification specialist, joins Heather Horn to decipher the guidance, discuss common questions, and provide an update on the FASB’s related project. Highlights include:

1:05 - Debt covenant violations - What should companies be thinking about if they violate a covenant at the balance sheet date?
3:35 - Refinancing short-term debt on a long term basis - How does this impact balance sheet classification of the debt?
9:50 - Puttable debt - What are the questions companies should be asking that will drive balance sheet classification of debt?
11:51 - Pre-payable debt - How do anticipated pre-payments impact classification?
13:57 - FASB's simplification initiative - What should companies be considering in regard to the FASB’s ongoing debt simplification project?

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About our guest

Suzanne Stephani is a director with PwC with more than 17 years of experience assisting companies in resolving complex accounting issues. Suzanne specializes in the application and interpretation of the accounting guidance related to financing transactions, such as debt, preferred stock and convertible instruments. As a consultant in PwC's National office, she helps clients understand the application of the accounting guidance in these areas. Suzanne is also the lead producer and director of PwC's popular quarterly Current accounting and reporting developments webcast series.

About our host

Heather Horn is PwC's National office thought leader, responsible for developing our communications strategy and conveying firm positions on accounting and financial reporting matters. She is the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series, as well as periodic webcasts for the power and utilities industry. With over 25 years of experience, Heather's accounting and auditing expertise includes financial instruments and rate-regulated accounting.