Under AASB 101 the classification of assets into current and non-current will depend on the entity's:
A) average operating cycle.
B) current accounting period.
C) ordinary course of business
D) normal operating cycle.
E) 12 month cycle.

Question

Quizplus · Accepted Answer

AASB 101 requires entities to classify assets as either current or non-current based on whether the asset is expected to be realized or consumed within the entity's normal operating cycle, which is typically 12 months. Therefore, the answer is D, which refers to the normal operating cycle.

Under AASB 101 the Classification of Assets into Current and Non-Current