Current Liability Definition Flashcards
1
Q
What is the first condition that makes the definition of a current liability?
A
The liability is due to be settled within the next 12 months
2
Q
What is the second condition that makes the definition of a current liability?
A
The entity expects to settle the liability within its normal operating cycle
3
Q
What is the third condition that makes the definition of a current liability?
A
The entity does not have an unconditional right to defer payment. beyond 12 months
4
Q
What is the fourth condition that makes the definition of a current liability?
A
The liability is to be used for trading
