An entity shall classify a liability as current when it holds the liability primarily for the purpose of trading.

Question

Quizplus · Accepted Answer

According to IAS 1 Presentation of Financial Statements, a liability shall be classified as current when the entity expects to settle the liability within its normal operating cycle or hold the liability primarily for the purpose of trading. Therefore, if an entity holds a liability primarily for the purpose of trading, it should be classified as current.

An Entity Shall Classify a Liability as Current When It