ACCA Applied Knowledge · Financial Accounting · Statement of financial position
Under IAS 1, which of the following items would be presented within non-current liabilities in the statement of financial position of a company with a 31 December year end?
The bank loan repayable on 31 March in two years' time is a non-current liability because it falls due more than twelve months after the reporting date. The other items are all settled within twelve months, so they are classified as current liabilities.
- AA bank loan of $200,000 repayable in full on 30 June of the following year
- BA bank loan of $200,000 repayable in full on 31 March in two years' timeCorrect
- CIncome tax payable of $50,000 due in nine months
- DA trade payable of $30,000 due in 60 days
Explanation
Liabilities due for settlement more than twelve months after the reporting date are non-current. A loan repayable in two years' time qualifies. The loan due next June, the tax due in nine months and the trade payable are all due within twelve months, so they are current.
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