Which of the following statements is incorrect?
A) Current assets are those assets that are realised or consumed within an entity's operating cycle.
B) For entities with diverse operations, such as retail and banking activities, a mixed basis of presentation may be appropriate.
C) An entity's operating cycle is usually 12 months but may be longer than 12 months after the reporting period.
D) An entity is permitted to classify deferred tax assets as current assets.

Question

Quizplus · Accepted Answer

An entity is not permitted to classify deferred tax assets as current assets according to IAS 1 Presentation of Financial Statements. Deferred tax assets should be classified as non-current assets.

Which of the Following Statements Is Incorrect