What it is
Debt notes are where covenant violations, waivers and current-versus-noncurrent classification come up. The note describes terms, collateral, covenants and compliance, and gives maturities for each of the next five years.
This checklist covers debt terms and security, maturities and classification, issuance costs and interest, extinguishment, convertible and other special debt, and related-party debt. Tie each statement to the lender agreements and the covenant calculation.
When to use it
- When preparing or reviewing the debt note.
- When a covenant is violated or a waiver is obtained.
- When refinancing happens after year end.
What’s inside
- Terms, collateral, restrictions and unused lines
- Maturities and classification
- Issuance costs, interest and extinguishment
- Convertible debt and restructurings
- Related party debt and subsequent events
Standard cited
This template follows ASC 470 / ASC 835-30. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use.
Questions
What must be disclosed about maturities?
The combined aggregate amount of maturities and sinking fund requirements for all long-term borrowings for each of the five years following the balance sheet date.
How are covenant violations treated?
Debt that is callable because of a violation at the balance sheet date is classified as current unless the creditor has waived or lost the right to demand repayment for more than one year, or cure within a grace period is probable (ASC 470-10-45-11). Subtopic 470-10 prescribes no specific disclosure for debt classified as current, so consider disclosing the violation, any waiver and the effect.
Is this checklist complete?
No. It is a prompt list paraphrased from the standard, not a substitute for the Codification or a full commercial disclosure checklist. Check each item against the current ASC text and any ASUs issued since the date you last checked, and add industry-specific requirements.
Related templates
- Audit Program: Debt and Equity
- Disclosure Checklist: Going Concern (ASC 205-40)
- GAAP Disclosure Checklist (Private Company, Short Form)
Last updated 11/05/2026. All free templates.