IAS 1's definition of current assets and further discussion at paragraph 59 will:
A)simplify the recognition of current assets.
B)require greater professional judgement in order to determine an entity's normal operating cycle.
C)improve analysts' decisions, as ratios that use current assets will use the same information.
D)have implications for assessing the liquidity of entities as current assets will now include fewer items.

Question

Quizplus · Accepted Answer

IAS 1's definition of current assets and discussion at paragraph 59 requires greater professional judgement in order to determine an entity's normal operating cycle. This is because the definition of current assets depends on an entity's operating cycle, which requires judgement to determine.

IAS 1's Definition of Current Assets and Further Discussion at Paragraph