Consider the information presented in E 13–11. 

Required: 

1. How would Sprint report the debt in its balance sheet if it reported under IFRS? Why? 

2. Would your answer to requirement 1 change if Sprint obtained its long-term credit facility after the balance sheet date? Why? 

Data From E 13–11. 

An annual report of Sprint Corporation contained a rather lengthy narrative entitled “Review of Segmental Results of Operation.” The narrative noted that short-term notes payable and commercial paper outstanding at the end of the year aggregated $756 million and that during the following year, “This entire balance will be replaced by the issuance of long-term debt or will continue to be refinanced under existing long-term credit facilities.”