Please help with this question:
Obligations callable at any time by the creditor is a current liability or non current liability?
“…Such callable obligations are to be classified as current liabilities unless one of the following conditions is met:
1. The creditor has waived or subsequently lost the right to demand repayment for more than one year (or an operating cycle, if longer) from the balance sheet date.
2. For long-term obligations containing a grace period within which the debtor may cure the violation, it is probable that the violation will be cured within that period, thus preventing the obligation from becoming callable.”
SUMMARY OF STATEMENT NO. 78
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