A colleague of mine and I are not on the same page as to what happens in the following case — who can help us?

BONDS callable by the holders … a call window is coming up in the next year. Interest rates are down so unlikely to be put back to the company by those bondholders. There are lots of bondholders.

Current or non-current?

I’ve always argued that technically the standard says if just callable (by creditor) for any old reason, then current. Cannot know creditors’ intent b/c there are too many of them and cannot poll them. When “intent” is not easily knowable, then one would probably use interest rates as a guide.

The contrast case is debt that is callable by the company. There the company KNOWS if they are going to call it or not… so their intent can drive classification.

My colleague thinks that it should be current, though, on the bonds callable by the bondholders.

INSIGHTS?