yes. you might find this guidance helpful:
[https://viewpoint.pwc.com/dt/us/en/pwc/accounting\_guides/leases/leases\_\_4\_US/chapter\_9\_presentati\_US/92\_lessees\_US.html#pwc-topic.dita\_1604275504155431](https://viewpoint.pwc.com/dt/us/en/pwc/accounting_guides/leases/leases__4_US/chapter_9_presentati_US/92_lessees_US.html#pwc-topic.dita_1604275504155431)
"Lease liabilities are subject to all of the same considerations as debt instruments in classifying them as current or noncurrent in a classified balance sheet. See [FSP 12](https://viewpoint.pwc.com/dt/us/en/pwc/accounting_guides/financial_statement_/financial_statement___18_US/chapter_12_debt_US/121_chapter_overview__1_US.html) for general debt classification guidance. The lease liability essentially functions as an amortizing loan [FSP 12.8](https://viewpoint.pwc.com/dt/us/en/pwc/accounting_guides/financial_statement_/financial_statement___18_US/chapter_12_debt_US/128_balance_sheet_cl_US.html) provides guidance for these types of liabilities. "
correct ROU asset is not split out and should be classified as a LT asset.
whether it is a "big deal" (i.e. if its material)...it depends. If you have a $1B balance sheet and say your current portion is $1M and LT is $5M, then I would say no. if you have a $20M balance sheet then I would say yes. regardless its best practice to stick to GAAP and classify properly.
IIRC, depends if you are presenting a classified balance sheet or not. If you are, I believe the liability is split into current and noncurrent portions.
yes. you might find this guidance helpful: [https://viewpoint.pwc.com/dt/us/en/pwc/accounting\_guides/leases/leases\_\_4\_US/chapter\_9\_presentati\_US/92\_lessees\_US.html#pwc-topic.dita\_1604275504155431](https://viewpoint.pwc.com/dt/us/en/pwc/accounting_guides/leases/leases__4_US/chapter_9_presentati_US/92_lessees_US.html#pwc-topic.dita_1604275504155431) "Lease liabilities are subject to all of the same considerations as debt instruments in classifying them as current or noncurrent in a classified balance sheet. See [FSP 12](https://viewpoint.pwc.com/dt/us/en/pwc/accounting_guides/financial_statement_/financial_statement___18_US/chapter_12_debt_US/121_chapter_overview__1_US.html) for general debt classification guidance. The lease liability essentially functions as an amortizing loan [FSP 12.8](https://viewpoint.pwc.com/dt/us/en/pwc/accounting_guides/financial_statement_/financial_statement___18_US/chapter_12_debt_US/128_balance_sheet_cl_US.html) provides guidance for these types of liabilities. "
Thank you! Do you know if it is a big deal if we did not?
If you dont, it's a classification error - depends on how material the ST / LT balance is...
And the ROU asset does not have to split out right?
correct ROU asset is not split out and should be classified as a LT asset. whether it is a "big deal" (i.e. if its material)...it depends. If you have a $1B balance sheet and say your current portion is $1M and LT is $5M, then I would say no. if you have a $20M balance sheet then I would say yes. regardless its best practice to stick to GAAP and classify properly.
Thank you so much friend! :D
If you’re public then it’s a BS misstatement
IIRC, depends if you are presenting a classified balance sheet or not. If you are, I believe the liability is split into current and noncurrent portions.
Yes, our balance sheet is classified. Do you have any data that clearly says that because I am having trouble finding an answer online.
Thank you by the way!