CFA Level I · CFA Level I Exam · Introduction to Financial Statement Analysis
Under IFRS, which of the following items is most likely presented in the statement of financial position as a non-current liability?
A bank loan repayable in full in four years is most likely a non-current liability, because it is not due within twelve months. Wages payable and declared dividends payable next quarter are settled soon, so they are classified as current liabilities.
- AWages payable due within one month
- BA bank loan repayable in full in four yearsCorrect
- CDividends declared and payable next quarter
Explanation
Non-current liabilities are obligations not due within twelve months or the operating cycle. A bank loan repayable in four years qualifies. Wages payable and declared dividends payable are due shortly and are current liabilities.
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