Question

what guidance does the codification provide on the disclosure of a long term obligations?

Answer 1

Codifications are issued by the FASB, the standard-setting board, for making accounting practice simple, standards oriented, and structural. There are various codifications; such as disclosure current liabilities, current assets, long-term liabilities or obligations, etc.

Required guidance for long-term obligations is as below:

Each long-term obligation (such notes payable, bond payable, etc.) must be disclosed with maturity periods, redemption requirements, and sinking fund requirements. These requirements are to be disclosed with amounts in each year for the next 5 years.