In the Case of Classifying a Liability as Current or Non-Current,what

question 8

Multiple Choice

In the case of classifying a liability as current or non-current,what approach does AASB 101 require if there is no clearly identifiable operating cycle?

• A) The most common length of operating cycle for other entities in a comparable industry must be used.
• B) The operating cycle of the event that gave rise to the creation of the liability must be used as the basis for determining the liability's operating cycle.
• C) The 12 month period from the reporting date must be used.
• D) The average operating cycle length over all operations of the entity must be used.
• E) None of the given answers.