Skip to main content

13.4 Appendix: Special Topics Related to Long-Term Liabilities

Special Topics​

Lease Obligations:

  • Operating leases vs. finance leases
  • Finance leases recorded as liabilities
  • Must comply with lease accounting standards

Convertible Debt:

  • Debt that can be converted to equity
  • Special accounting considerations
  • Less common for SMEs

Debt Restructuring:

  • Modifying debt terms
  • Special accounting treatment
  • May involve gain or loss

Luxembourg Compliance Note​

Special topics in Luxembourg:

  • Must follow accounting standards
  • Must comply with regulations
  • Must maintain proper documentation
  • Must use appropriate PCN accounts

Think It Through​

What are some special situations that might affect long-term liability accounting?