It is permissible for a firm that reports in accordance with IFRS to emphasize its liquidity by placing current assets and current liabilities in close proximity to one another on the balance sheet.

Question

Quizplus · Accepted Answer

According to IFRS, current assets and current liabilities should be presented separately in the balance sheet, but there is no specific guidance on their placement in relation to each other. Therefore, a firm may choose to place them in close proximity to highlight its liquidity position.

It Is Permissible for a Firm That Reports in Accordance