FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Please refer to the sample and paraphrase the ''Long Term Debt''. Changing the company name to Newmont Corporation. Please write a close word count and format of the sample.

Long Term debt- The Company's financial instruments consist of cash, accounts receivable,
other financial assets, accounts payable and accrued liabilities, transaction taxes payable, loan
payable, interest payable, and long-term debt. The Company characterizes inputs used in
determining fair value using a hierarchy that prioritizes inputs depending on the degree to which
they are observable. The fair value hierarchy establishes three levels to classify the inputs to
valuation techniques used to measure fair value. The three levels of the fair value hierarchy are
as follows: • Level 1: inputs are quoted prices (unadjusted) in active markets for identical assets
or liabilities. Active markets are those in which transactions occur in sufficient frequency and
volume to provide pricing information on an ongoing basis. • Level 2: inputs, other than quoted
prices, that are observable, either directly or indirectly. Level 2 valuations are based on inputs,
including quoted forward prices for commodities, market interest rates, and volatility factors,
which can be observed or corroborated in the marketplace. • Level 3: inputs are less observable,
unavoidable or where the observable data does not support the majority of the instruments’ fair
value. Cash and performance bonds are measured based on Level 1 inputs of the fair value
hierarchy on a recurring basis. The carrying value of accounts receivable, accounts payable and
accrued liabilities, bank indebtedness, loan payable, interest payable, and long-term debt
approximate their fair value because of the short-term nature of these instruments and because
long-term debt approximates a market rate of interest. The Company assessed that there were no
indicators of impairment for these financial instruments.
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Transcribed Image Text:Long Term debt- The Company's financial instruments consist of cash, accounts receivable, other financial assets, accounts payable and accrued liabilities, transaction taxes payable, loan payable, interest payable, and long-term debt. The Company characterizes inputs used in determining fair value using a hierarchy that prioritizes inputs depending on the degree to which they are observable. The fair value hierarchy establishes three levels to classify the inputs to valuation techniques used to measure fair value. The three levels of the fair value hierarchy are as follows: • Level 1: inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Active markets are those in which transactions occur in sufficient frequency and volume to provide pricing information on an ongoing basis. • Level 2: inputs, other than quoted prices, that are observable, either directly or indirectly. Level 2 valuations are based on inputs, including quoted forward prices for commodities, market interest rates, and volatility factors, which can be observed or corroborated in the marketplace. • Level 3: inputs are less observable, unavoidable or where the observable data does not support the majority of the instruments’ fair value. Cash and performance bonds are measured based on Level 1 inputs of the fair value hierarchy on a recurring basis. The carrying value of accounts receivable, accounts payable and accrued liabilities, bank indebtedness, loan payable, interest payable, and long-term debt approximate their fair value because of the short-term nature of these instruments and because long-term debt approximates a market rate of interest. The Company assessed that there were no indicators of impairment for these financial instruments.
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