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:

Piaget's Stages

A theory outlining four stages of cognitive development in children, describing how their thinking evolves from simple to complex.

Sensorimotor

A developmental stage in infants where learning occurs through sensory experiences and manipulating objects, crucial for cognitive development.

Formal Operational

A stage in Piaget's theory of cognitive development where individuals learn to think abstractly, reason logically, and plan systematically.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or touched, a concept developed in infancy.