Which of the following represents a difference in the classification of current liabilities between IFRS and U.S.GAAP?
A)refinanced short-term debt
B)amounts payable on demand due to violation of debt covenants
C)bank overdrafts
D)all of the above

Question

Quizplus · Accepted Answer

Under IFRS, refinanced short-term debt is classified as non-current if the refinancing is completed before the balance sheet date, while under US GAAP, it is classified as a current liability. Amounts payable on demand due to violation of debt covenants are classified as a current liability under IFRS, but under US GAAP, it depends on the company's ability to rectify the violation. Bank overdrafts are generally classified as a current liability under IFRS, while under US GAAP, they can be classified as either a current or a non-current liability depending on the specific circumstances surrounding the overdraft. Hence, all of the above options represent a difference in the classification of current liabilities between IFRS and US GAAP.

Which of the Following Represents a Difference in the Classification