Long-Term Debt

Definition: Long-Term Debt is the portion of a company's interest-bearing obligations that is due more than 12 months after the balance sheet date. It includes…

Long-Term Debt is the portion of a company's interest-bearing obligations that is due more than 12 months after the balance sheet date. It includes bonds payable, long-term notes payable, mortgage payable, term loans, debentures, and the non-current portion of finance lease liabilities. The portion due within 12 months is reclassified each period as 'Current Portion of Long-Term Debt' and reported in current liabilities. Long-Term Debt is reported on the balance sheet at amortized cost using the effective interest method under ASC 470 / IFRS 9.