provides that if an entity has the

discretion to refinance or roll over an

obligation
for at least twelve months after the
reporting period under an existing loan
facility, the obligation shall
be classified as noncurrent, even if it
would otherwise be due within a shorter
period.
The 12% note payable is classified as
current.
PAS 1, paragraph 72, provides that an
obligation that matures within one year
from the end of the
reporting period is classified as current
even if it is refinanced on a long-term
basis after the reporting
period and before issuance of the
financial statements.
The 12% note payable is refinanced on
March 1, 2017 and therefore classifies as
current.
Problem 2-17 A
Accounts payable 2,000,000
Short-term borrowings 1,500,000
Bonds payable 3,000,000
Premium on bonds payable 500,000
Mortgage payable - current portion
500,000
Bank loan 1,000,000
Total current liabilities 7,500,000