Under IFRS, Even If the Entity Plans to Refinance Long

question 123

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.

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Definitions:

Common Ancestor

An ancestral organism from which two or more descendant species evolved.

Hominins

Members of the human lineage, including all species that have arisen since the split from our common ancestor with chimpanzees, characterized by bipedalism and larger brains.

Bipedalism

The ability to walk on two legs, a characteristic mainly observed in humans among primates.

Foramen Magnum

A large opening in the base of the skull through which the spinal cord enters and connects to the brain, indicative of bipedal or quadrupedal locomotion in vertebrates.