According to AASB 101 an entity will classify a liability as non-current when:
A)it holds the liability mainly for trading
B)it expects to settle the liability outside its normal operating cycle
C)the entity does not have an unconditional right to defer the settlement of the liability for at least 12 months after the reporting date
D)the liability is due to be settled within 12 months after the reporting date.

Question

Quizplus · Accepted Answer

A liability is classified as non-current if it is expected to be settled beyond the entity's normal operating cycle, which typically exceeds 12 months.

According to AASB 101 an Entity Will Classify a Liability