Short-Term Obligation

A short-term obligation expected to be refinanced is a short-term obligation that may be excluded from current liabilities and included in noncurrent debt if the intent is to refinance it on a long-term basis and the intent is supported by the ability to do so. The ability to refinance is evidenced either by the actual refinancing prior to the issuance of the financial statements or the existence of a noncancelable financing agreement from a lender having the financial resources to accomplish the refinancing. See also current liabilities.