For refinancing, the borrower must contact either the existing lender or a new lender to apply for the loan and reapply for a loan. The credit conditions and financial situation of an individual or business are then reassessed during refinancing. Consumer loans, which are generally eligible for refinancing, include mortgages, car loans and student loans. Corporate refinancing is the process by which a company reorganizes its financial obligations by replacing or restructuring existing debts. Corporate refinancing is often intended to improve a company`s financial situation and can also take place, when a company is in trouble through debt restructuring. With respect to corporate refinancing, older corporate bond issues are often issued, whenever possible, for lending purposes and at lower interest rates. Long-term liabilities are debts with a maturity date of more than one year, for example. B loan bond bonds, which mature in two years. Accounts report long-term liabilities to the right of the balance sheet with the balance of the liability tranche, and their sources of financing are generally related to investments.

For example, bonds, bonds, mortgages and other bank loans (it should be noted that not all bank loans are long-term, as not all are paid over a period of more than one year). Long-term commitments are also a way for a company to prove the existence of debts that can be paid over a period of more than one year, a sign that it is able to obtain long-term financing. IAS 1 Presentation of financial statements – Current/long-term classification of debt (rolling contracts) A current liability, such as. B the purchase of a loan, can be documented with an invoice.: Short-term liabilities are payable and payable no later than the current accounting period. Deferred revenues are funds received in accrual accounting for goods or services that have not yet been delivered and revenues from the sale have not been generated. According to the principle of revenue recognition, the deferred amount is recorded as a liability until delivery, to which it is converted into revenue. An example of a typical customer advance is obtaining an annual maintenance contract that pays the entire contract in advance. The receipt of $12,000 for the annual maintenance contract is first counted as latent revenue. Since maintenance is provided and a portion of the fee is earned, $1,000 is regularly recorded in revenue each month and the account is reduced with deferred revenue. Consumers generally try to refinance certain debt liabilities in order to obtain more favourable credit conditions, often in response to changing economic conditions. The common objectives of refinancing are to reduce the fixed interest rate in order to reduce payments over the term of the loan, to change the duration of the loan or to move from a fixed rate mortgage to a variable rate mortgage (ARM) or vice versa. Borrowers can also refinance because their credit profile has improved, because their long-term financial plans have changed, or because their existing debts are repaid by consolidation into a favourable credit.

In the expectation and discretion to refinance or transfer a bond with the same lender for a period of at least twelve months after the reference period, under an existing loan facility, on the same or similar terms, it considers the commitment to be long-term, even if otherwise it would be due within a shorter period. However, if refinancing or overflowing the commitment is not at the discretion of the company (for example. B there is no refinancing agreement), the entity does not take into account the refinancing potential of the commitment and considers the commitment as current. The calculation of pre-current, current and potentially variable transaction costs of refinancing is an important part of the