Under IFRS, Even If the Entity Plans to Refinance Long-Term

question 6

Multiple Choice

Under IFRS, even if the entity plans to refinance long-term debt, the current portion must be reported as a current liability UNLESS

• A) long-term financing has been completed after the statement of financial position date, but before the financial statements are released.
• B) management intends to refinance the debt on a long-term basis.
• C) at statement of financial position date, the entity expects to refinance under an existing agreement for at least a year, and the decision is solely at its discretion.
• D) management intends to discharge the debt by issuing shares.