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At December 3 1 , 2 0 2 3 , Parew Corporation has a long - term debt of $ 7 0 0 , 0
At December Parew Corporation has a longterm debt of $ owing to its bank. The existing debt agreement imposes
several covenants related to Parew's liquidity and solvency. At December Parew was not in compliance with the covenants
related to its current ratio and debt to total assets ratio; however, the bank was allowing Parew to operate outside of its covenants.
Parew prepares financial statements in accordance with IFRS.
b
How would your answer for "Should the debt be reported as a current liability at December be different if Parew prepared
financial statements in accordance with ASPE?
B
I
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