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  • FR - Ias 1

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    Zubair Jalloh
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    The operating cycle is the time between acquiring assets for processing and their conversion to cash or cash equivalents. It is calculated as Inventory Days + Receivables Days - Payables Days. Current assets and liabilities are expected to be realized or settled within 12 months or the normal operating cycle of the business. Non-current items are not expected to be realized or settled within 12 months or the normal operating cycle.

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    FR MindMap

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    FR - IAS 1

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    The operating cycle is the time between acquiring assets for processing and their conversion to cash or cash equivalents. It is calculated as Inventory Days + Receivables Days - Payables Days. Current assets and liabilities are expected to be realized or settled within 12 months or the normal operating cycle of the business. Non-current items are not expected to be realized or settled within 12 months or the normal operating cycle.

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    © All Rights Reserved
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    5 views1 page

    FR - Ias 1

    Uploaded by

    Zubair Jalloh
    The operating cycle is the time between acquiring assets for processing and their conversion to cash or cash equivalents. It is calculated as Inventory Days + Receivables Days - Payables Days. Current assets and liabilities are expected to be realized or settled within 12 months or the normal operating cycle of the business. Non-current items are not expected to be realized or settled within 12 months or the normal operating cycle.

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    © All Rights Reserved
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    of 1

    operating cycle:

    time between acquisition of assets


    for processing & their realisation in
    cash/cash equivalents
    Formula = Inven' days + Receivable days - Pay' days
    CURRENT/NON-CURRENT
    Is settled in entity's operating cycle; OR
    DISTINCTION Is realised, sold or consumed in, entity's normal operating cycle, OR
    If settled within 12m/es of reporting date
    = current liability
    Is held for trading purposes; OR IAS 1 Is held for trading purposes or short-term & expected to be realised within 12m/es of
    If payable on demand due to breach of conditions NB: Non-current reporting date, OR
    financial liability
    Is settled within 12m/es of reporting date; OR CURRENT LIABILITY CURRENT ASSETS
    If lender gives period of grace for at least 12m/es from reporting date = NCL Is cash/cash equivalent asset
    No unconditional right to defer payment for at least 12m/es of reporting date

    All others are classified as NCL Any other is classified as NCA

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