October 4th, 2017 FASB to Amend U.S. GAAP for Classifying Debt – by Linda Marie Pearson, CPA, CFE In September 2017, FASB agreed to amend U.S. GAAP with respect to classification of debt. Under the forthcoming update, if a liability is due to be settled more than one year or more than one operating cycle after the balance sheet date, or the business has the right to defer settlement of the liability for at least one year, the debt would be considered non-current. This amends the more complex debt classification rules for the purpose of making the distinction between short-term and long-term debt easier to understand. Private companies and other organizations will not have to follow the revised guidance until their fiscal years that begin after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. Organizations can adopt the amendments earlier if they choose. For more information, you can view the full FASB Amended Standard [here] or you can contact one of Sansiveri’s auditing professionals at 401-331-0500.