Under IAS 1, Presentation of Financial Statements, which of the following is NOT a criterion in the definition of a current liability?
A) It is a liability that is expected to be settled in an entity's normal operating cycle.
B) It is a liability primarily held for the purpose of trading.
C) It is a liability that does not have the right to defer until 18 months after the balance sheet date.
D) It is a liability that is expected to be settled within 12 months of the balance sheet date.

Question

Quizplus · Accepted Answer

IAS 1 defines a current liability as one expected to be settled within the entity's normal operating cycle, held primarily for trading, or due to be settled within twelve months after the reporting period. It does not specify an 18-month period for deferral.

Under IAS 1, Presentation of Financial Statements, Which of the Following