Question

What disclosures are required relative to long-term debt and sinking fund requirements?

Short answer

The disclosures required in relation to long-term obligations and sinking fund requirements include maturity value and future disbursements.

Step-by-step solution

Meaning of long-term debt

Long-term debts refer to the obligations which are to be met by the business enterprise after a comparatively long period of time, that is, usually one year. Such debt does not become due for payment in the ordinary course of business operation or within one year.

Disclosures required relative to long-term debt and sinking fund requirements

The disclosures needed onthe date of the balance sheet comprise future disbursements for sinking requirements and the maturity value of long-term debt at the intervalof every five years.