Can companies reclassify short-term debt expected to be refinanced on a long-term basis after the balance sheet date as long-term debt? Explain. OA. If certain conditions are satisfied, then the debt can be reclassified under U.S. GAAP. Specifically, the short-term debt can be reclassified as long-term debt if (1) management intends to refinance on a long-term basis and (2) management must demonstrate the ability to consummate the refinancing. OB. No. Under U.S. GAAP, short-term debt cannot be reclassified. OC. If certain conditions are satisfied, then the debt can be reclassified under IFRS. Specifically, the short-term debt can be reclassified as long-term debt if either: (1) the short-term debt is expected to be extended or replaced by debt that will be due within one year of the balance sheet date, or (2) the short-term debt is expected to be replaced or refinanced with fixed assets. OD. Yes. Short-term debt can reclassified as long-term debt if extended beyond two years