急问：take or pay commitment

wuxuan0911

if a company has a long-term take or pay comitment with its major supplier,when calculate the company's financial ratio,a financial analysit should :

add the present value of the minimum future commitment to the company's debt only or to both the assets and debt?

请高手给解释下如何做？为什么？谢谢啦

[em09]

wuxuan0911

谢谢

[em07]

unisabcd

should be added to both Asset and Liability

staceyknow

Both. Additional debt comes from pay comitment, additional asset comes from future delivery of goods. see if I'm wrong. : )