Financial Accounting and Reporting

The two conditions necessary to classify a mandatorily redeemable financial instrument as a liability.

Balance sheet classification for a liability, which is callable on demand, if a debt covenant is violated, creditor grants a grace period, and probable debtor will rectify.

Balance sheet classification for a liability, which is callable on demand, if a debt covenant is violated; however, the violation is waived by the creditor.

Balance sheet classification for a liability, which is callable on demand, if a debt covenant is violated.