Question

What guidance does the Codification provide on the disclosure of long-term obligations?

Short answer

The combined total amount of maturityand sinking fund requirementsshould be disclosed.

Step-by-step solution

Meaning of long-term Liabilities

Long-term liabilities are debts owed by an organization that won't need to be paid off for at least a year. This information is separately provided to help investors, creditors, and lenders better understand a business's commitments.

Explaining the guidance the Codification provides on the disclosure of long-term obligations

According to FASB ASC 470-10-50-1 (Disclosure of Long-Term Obligations):

For each of the five years that follow the date of the most recent balance sheet reported, the total maturity amount and sinking fund requirements should be declared for all long-term borrowings. (Consider Section 505-10-50 for disclosure requirements that apply to securities, including debt securities.)