IAS 1Chapter 3Lesson 2
Current assets and liabilities: the classification criteria
Step 1 of 10Learning objectives
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An asset or liability is current if it meets one of the IAS 1 criteria; for a liability, the right to defer settlement at the end of the period is decisive.
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Learning objectives
- Identify the criteria for classifying an asset as current and determine an asset's classification from the facts of a case.
- Determine a liability's classification from the right to defer settlement at the end of the period.
- Calculate the non-current portion of a borrowing and the total current liabilities from the case's instalments.
- Record the reclassification of an instalment from non-current to current.