Current Portion of Long-Term Debt (CPLTD)
What it is:
How it works (Example):
For example, let’s assume that XYZ Company borrows $10,000,000 from Bank ABC. Because the loan is not due for five years, Company XYZ records the portion of the loan that is not due in the next 12 months as a . The part that is due in the next 12 months, however (let’s say it’s $145,000), is the current portion of and is recorded as a .
Why it Matters:
Although the Financial balance sheet, not all liabilities are required to appear on the balance sheet, which is why analysts must also carefully study the to a company’s .Standards Board, the Securities and Exchange , and other regulatory bodies define how and when a company’s liabilities are reported, and although liabilities make up a significant portion of the