CURRENT LIABILITES An entity shall classify a liability as current when: 1.

It expects to
settle the liability (obligation) in its normal operating cycle; 2. It holds the liability primarily for
the purpose of trading; 3. The liability is due to be settled within 12 months after the reporting
period; or 4. The entity does not have an unconditional right to defer settlement of the
liability for at least 12 months after the reporting period. CURRENTLY MATURING LONG-
TERM LIABILITIES General rule: currently maturing long-term liabilities are presented as
current liabilities. Exception: • Refinancing agreement is fully completed on or before the
balance sheet date – non-current liability. • Refinancing agreement after the balance sheet
date best before the financial statement are authorized for issue – non-current liability if the
entity expects, and has the discretion, to refinance it on a long-term basis under an existing
loan facility. BREACH OF LOAN AGREEMENT General rule: A liability that is payable on
demand is a current liability. Exception: It is permitted as non-current liability if the lender
provides the entity, on or before the balance sheet date, a grace period ending at least 12
months after the balance sheet date to rectify a breach of loan covenant. PRESENTATION
OF DEFERRED TAXES Deferred tax liabilities (assets) are presented as non-current items
in a classified statement of financial position, irrespective of their expected dates of
reversal. MINIMUM LINE ITEMS IN THE STATEMENT OF FINANCIAL POSITION a.
Property, plant, and equipment b. Investment property c. Intangible assets d. Financial
assets (excluding amounts shown e. Investments accounted for using the equity method; f.
Biological assets g. Inventories h. Trade and other receivables i. Cash and cash equivalents
j. Assets (or disposal groups) classified as held for sale in accordance with PFRS 5 k.
Trade and other payables l. Provisions m. Financial liabilities
n. Liabilities and assets for current tax, as defined in PAS 12 Income Taxes; o. Deferred tax
liabilities and deferred tax assets, as defined in PAS 12; p. Liabilities included in disposal
groups classified as held for sale in accordance with PFRS 5; q. Non-controlling interests,
presented within equity; and r. Issued capital and reserves attributes to owners of the parent