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

IFRS treats refinanced short-term debt as a current liability if it meets certain conditions such as the creditor not having waived the right to demand repayment for more than a year. U.S. GAAP treats it as non-current if the debtor had the intention and ability to refinance before the balance sheet date. Under IFRS, amounts payable on demand due to violation of debt covenants are classified as non-current if the lender agrees not to make a demand for at least a year. Under U.S. GAAP, these are classified as current liabilities. Bank overdrafts are generally classified as current liabilities under both IFRS and U.S. GAAP.

Which of the Following Represents a Difference in the Classification