6.

Current and noncurrent presentation of assets and liabilities provides useful information when the
entity
supplies goods or services within a clearly identifiable operating cycle
Is a financial institution
Is a public utility
Is a nonprofit organization
7. A presentation of asset and liabilities in increasing or decreasing order of liquidity provides
information
that is reliable and more relevant than a current and noncurrent presentation for
Financial institution
8. Under Philippine jurisdiction, the common practice is to present in the statement of financial position
Current assets before noncurrent assets, current liabilities before non current liabilities and
equity after liabilities
9. A financial liability due within twelve months after the reporting period shall be classified as
noncurrent
When it is refinanced on a long-term basis on or before the end of the reporting period
10. When an entity breaches under a long-term loan agreement on or before the end of the reporting
period
with the effect that the liability becomes payable on demand, the liability is classified as
Current if the lender has agreed after the reporting period and before the issuance of the
statements not to demand payment as a consequence of the breach
Current under all circumstances
Noncurrent under all circumstances
Noncurrent if the lender agreed after the reporting period to provide a grace period for at least
twelve months after the reporting period