Facts: Argent Corporation reports short-term obligations of $15,000,000 in the current liability section of its statement of financial position at December 31, 2020 (its year-end). This amount includes the current portion of 12% long-term debt in the amount of $10,000,000 (matures in March 2021). Management has stated its intention to refinance the 12% debt whereby no portion of it will mature during 2021. The financial statements are issued on March 25, 2021. a. Based solely on the above facts, would management be correct under US GAAP if they classified the $10,000,000 portion of the above debt as long-term as of 12/31/2020? Why or why not?
b. Using the same fact pattern, now assume that Argent Corporation issues $13,000,000 of 10-year bonds to the public on January 18, 2021 and management uses the proceeds to liquidate the $10,000,000 short-term debt on February 8, 2021.
c. Would the classification of the $10,000,000 debt at December 31, 2020 be the same under IFRS and US GAAP? Explain your answer.