Reclassify its short term loans as long terms

Assignment Help Financial Accounting

Reference no: EM131261495

When a company violates its loan covenant with its bank, Can it 1) reclassify its long term investment property as a short term property held for sale even though there is no plans to sell it? 2) Reclassify its short term loans as long terms on the basis of refinancing even though there is no current refinancing plans? Do these two options comply with accounting standarts and presenting financial statements?

Reference no: EM131261495

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