IFRS Identifies a Number of Criteria to Determine Whether a Liability

question 108

Essay

IFRS identifies a number of criteria to determine whether a liability should be classified as current. A liability that satisfies any one of these criteria must be classified as current. For the following list of criteria, identify whether each one is relevant for the classification of a liability as current instead of non-current.

---

Definitions:

Verbalize

To verbalize means to express thoughts or feelings in words, making abstract concepts communicable and understandable.

Frightening

Causing fear or alarm; having the ability to induce fear or a sense of dread.

Psychodynamic Therapy

A therapeutic approach emphasizing the psychological root causes of emotional suffering, primarily focuses on unconscious processes as they are manifested in a person's present behavior.

Traditional Psychoanalysis

A therapeutic technique originated by Freud, focusing on unconscious processes and childhood experiences.