Under IFRS, which of the following is NOT a condition for an investment to be classified as current?
A) It is held primarily for trading purposes.
B) It is a cash equivalent.
C) It must be expected to be sold or realized within 12 months from the statement of financial position date.
D) It must be accounted for under the cost model.

Question

Quizplus · Accepted Answer

The condition for an investment to be classified as current is that it must be expected to be sold or realized within 12 months from the statement of financial position date, unless it is held primarily for trading purposes or is a cash equivalent. The accounting model (cost model, fair value through profit or loss, or equity method) used to account for the investment does not affect its classification as current or non-current.

Under IFRS, Which of the Following Is NOT a Condition