CERTYNEX IFRS ACADEMY

At 31 December 2026, Zephyr SA must repay a loan of EUR 3,000,000 in 2029 and, at the closing date, has the right to defer that settlement beyond 12 months (case facts). Its management nevertheless considers repaying early in June 2027, without being compelled to. How is the loan classified at 31 December 2026?

As a non-current liability, since the right to defer exists at the closing date, whatever management's intention.

As a current liability, since management expects to settle the loan within 12 months after the closing date.

As a current liability for the part that management plans to repay, the balance being non-current.

As a current liability, as soon as early repayment is probable at the date the accounts are finalised, even without any obligation to pay.