Question: Under IFRS, if a long-term debt becomes callable due to the violation of a loan covenant a. The debt may continue to be classified as

Under IFRS, if a long-term debt becomes callable due to the violation of a loan covenant

a. The debt may continue to be classified as longterm if the company believes the covenant can be renegotiated.

b. The debt must be reclassified as current.

c. Cash must be reserved to pay the debt.

d. Retained earnings must be restricted in the amount of the debt.

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