Reading 39: Non-current (Long-term) Liabilities-LOS e 习题精选 2011, relating, related, center, style

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Session 9: Financial Reporting and Analysis: Inventories, Long-lived Assets, Income Taxes, and Non-current Liabilities
Reading 39: Non-current (Long-term) Liabilities

LOS e: Discuss the financial statement presentation of and disclosures relating to debt.

 

 

In analyzing disclosures related to the financing liabilities of a company, which of the following disclosures would be least helpful to the analyst?

A) The interest expense for the period as provided on the income statement or in a footnote.

B) The present value of the future bond payments discounted at the coupon rate of the bonds.

C) Filings with the Securities and Exchange Commission (SEC) that disclose all outstanding securities and their features.

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When analyzing disclosures related to financing liabilities, analysts would review the balance sheet and find the present value of the promised future liability payments. These payments would then be discounted at the rate in effect at issuance (i.e., the yield to maturity), not the coupon rate of the bonds.

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Which of the following is least likely to be disclosed in the financial statements of a bond issuer?

A) Collateral pledged as security in the event of default.

B) The market rate of interest on the balance sheet date.

C) The amount of debt that matures in each of the next five years.

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The market rate on the balance sheet date is not typically disclosed. The amount of principal scheduled to be repaid over the next five years and collateral pledged (if any) are generally included in the footnotes to the financial statements.