Debt Covenant Definition

A debt covenant is a promise in a debt agreement that certain activities will or will not be carried out, such as a limit on the total amount a borrower can borrow

Recent Articles

FASB proposes to add recognition, derecognition guidance to conceptual framework

FASB mulls lease accounting standard change as it moves HQ

Summary provided by MaterialAccounting.com: This article discusses the FASB's possible change to the new lease standard, ASC 842.   The Financial Accounting Standards Board is considering a change in its leases standard to address leases that are under the common...

SFFAS 54: FASAB Lease Accounting Explained with a Full Example

Summary provided by MaterialAccounting.com: This article discusses changes under the new FASAB standard, SFFAS 54.  What is SFFAS 54? SFFAS 54 is the new lease accounting standard issued by the Federal Accounting Standards Advisory Board (FASAB or “the Board”) which...

GASB sets guidelines on notes to financial statements

GASB sets guidelines on notes to financial statements

Summary provided by MaterialAccounting.com: This article highlights the new GASB framework for disclosure requirements for state and local governments.  -- The Governmental Accounting Standards Board released a concepts statement Thursday to provide a conceptual...

Managing the Going Concern Risk in an Uncertain Environment

In Brief The worldwide COVID-19 pandemic has affected businesses of every size in every country, and the United States has been hit particularly hard. Many businesses are facing increasing doubts about their ability to continue as a going concern, and the decisions...