The Balance Sheet and Financial Disclosures

The president of the Santander Company is upset! The president has just received the first draft of the companys annual financial statements for the year ended December 31, 2014, prepared by the companys controller. The statements show an overdraft in one of the companys bank accounts as an item in the current liabilities section of the balance sheet. The company experienced a very difficult year during 2014, although the first month of 2015 has shown some improvement. The Santander Company is a public company and may wish to issue additional common shares in the near future. The proceeds of the stock issuance would be used to acquire new equipment that could prove vital in reversing the companys decline.

Required:

Has the controller properly reported the bank overdraft? What factors should be considered in reporting this item?