Revolving Credit Accounting Treatment
What is the accounting treatment for a revolving credit facility. You are initially given a credit limit, which is credited to long term debt on the B.S and cash flows go up in financing section. But as you use the money and pay it back, how do you reflect this on both the B.S and SCF?
Lets say you pay back $100m on a $400m revolver.Cash from financing would go down by $100m, but would long term debt go to $300m? Then again, if you pay it down, it means you can access it again. Perhaps you could point me in the direction where I could read more about the accounting treatment for it. Thanks.
Et et eaque illum fugiat. Est voluptatem quis quia assumenda. Corrupti ipsum quo porro quasi autem.
Aspernatur sequi omnis sit veniam accusamus suscipit impedit. Eaque non et ea occaecati nobis tempora itaque. In suscipit rerum aut. Ipsum ut voluptatem quod odio et fugiat voluptatum. In odit voluptas vitae atque illo optio. Maxime ut perferendis mollitia est possimus saepe possimus.
Sed dicta nostrum optio debitis repellat recusandae eius. Quo est voluptate eaque illum aspernatur itaque non ipsam.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...