Under IFRS, the correct order to present current assets is:
A) Cash, accounts receivable, prepaid items, inventories.
B) Cash, accounts receivable, inventories, prepaid items.
C) Cash, inventories, accounts receivable, prepaid items.
D) There is no required order under IFRS; current assets may be presented by liquidity or reverse liquidity, or in whatever order provides the most benefit to financial statement users.

Question

Quizplus · Accepted Answer

Under IFRS, there is no prescribed order for presenting current assets on the balance sheet. Entities are allowed flexibility to present their assets in the order that most appropriately reflects their liquidity or in a manner that provides the most useful information to users of the financial statements. This could be either by liquidity, reverse liquidity, or another method that enhances the usefulness of the information provided.

Under IFRS, the Correct Order to Present Current Assets Is