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Discretion to Refinance
Raven-59294 - 08/19/2018, 12:39 pm

It doesn't state that the company has the discretion to refinance the bond agreement, as such, events after the reporting period will only be disclosed. Thus, the bond must be reported as a current liability.

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Mohd-3057 - 10/2/2018, 6:35 pm

if the liability are due in the next year, then it should be reported as current liability, so answer 1 can be correct also.

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taxfax - 08/24/2018, 2:38 pm

The answer states they entered into a non-cancellable agreement to refinance. It is fair to presume the company has discretion to refinance.

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Raven-59294 - 08/25/2018, 4:32 am

Oh, you're right, I missed the "If" there. Thank you