[Anonymous]

NINJA Question –

Under the ninja notes, it says current liabilities can be refinanced into a non-current liability if the refinance agreement is executed before the balance sheet date. GAAP only requires intent, not execution.

However in Becker (and I think someone posted on here awhile back), that for GAAP you need both intent and proof of execution and under IFRS you COULD NOT reclass them into non-current liabilities.

Please shed some light on this. FAR is tomorrow for me.

[Kimboroni]

My Wiley book seemed to agree with Ninja, although the formatting was a little weird, so I wasn't 100% sure on that. Wiley has a lot of mistakes, so I cropped it up to a formatting error.

AUD 84 (1/9/14-Wiley books/TB + free materials)
FAR 83 (5/21/14-the above + NINJA 10 Pt Combo Lite)
REG 84 (7/9/14-Wiley books/TB + NINJA Audio/FC/Notes)
BEC 76 (10/5/14-Wiley books/TB + NINJA Audio/FC)

Disclaimer: My ninja avatar is not meant to imply that I have any affiliation with this site other than being a forum member. That's a pic of a T-shirt that my daughter gave me for my birthday. 🙂

[Kimboroni]

My Wiley book seemed to agree with Ninja, although the formatting was a little weird, so I wasn't 100% sure on that. Wiley has a lot of mistakes, so I cropped it up to a formatting error.

AUD 84 (1/9/14-Wiley books/TB + free materials)
FAR 83 (5/21/14-the above + NINJA 10 Pt Combo Lite)
REG 84 (7/9/14-Wiley books/TB + NINJA Audio/FC/Notes)
BEC 76 (10/5/14-Wiley books/TB + NINJA Audio/FC)

Disclaimer: My ninja avatar is not meant to imply that I have any affiliation with this site other than being a forum member. That's a pic of a T-shirt that my daughter gave me for my birthday. 🙂

[NJPRU]

Gleim states that under GAAP, the entity has to have the intent to refinance and must have the ABILITY to do so as well and it may be done before or after the balance sheet date.. and I believe IFRS you cannot reclass.

AUD: DONE
FAR: DONE
BEC: DONE
REG: DONE

IM GOING TO BE A CPA!!!!!

[NJPRU]

Gleim states that under GAAP, the entity has to have the intent to refinance and must have the ABILITY to do so as well and it may be done before or after the balance sheet date.. and I believe IFRS you cannot reclass.

AUD: DONE
FAR: DONE
BEC: DONE
REG: DONE

IM GOING TO BE A CPA!!!!!

[UHC2005]

IFRS has to be reclassed before the balance sheet date. It looks like GAAP requires intent AND ability.

https://connect.mcgraw-hill.com/sites/0077328787/student_view0/ebook/chapter13/chbody1/a_closer_look_at_the_current_and_noncurrent_classification.htm

Using Ninja MCQ, NINJA Notes, Audio, Flashcards and BLITZ, and 2014 Wiley Text

FAR - (61,63)
AUD - (68)

Keep Calm and RTMFQ

Accountant, what is best in life? To crush your MCQs, see them driven before you, and hear the lamentation of their SIMS!

[UHC2005]

IFRS has to be reclassed before the balance sheet date. It looks like GAAP requires intent AND ability.

https://connect.mcgraw-hill.com/sites/0077328787/student_view0/ebook/chapter13/chbody1/a_closer_look_at_the_current_and_noncurrent_classification.htm

Using Ninja MCQ, NINJA Notes, Audio, Flashcards and BLITZ, and 2014 Wiley Text

FAR - (61,63)
AUD - (68)

Keep Calm and RTMFQ

Accountant, what is best in life? To crush your MCQs, see them driven before you, and hear the lamentation of their SIMS!

[NJPRU]

Oh yes, UHC! Thanks for that!

AUD: DONE
FAR: DONE
BEC: DONE
REG: DONE

IM GOING TO BE A CPA!!!!!

[NJPRU]

Oh yes, UHC! Thanks for that!

AUD: DONE
FAR: DONE
BEC: DONE
REG: DONE

IM GOING TO BE A CPA!!!!!

[Anonymous]

I just read that GAAP you can do it before the balance sheet date but it has to be completed before the date of f/s issuance

[Anonymous]

I just read that GAAP you can do it before the balance sheet date but it has to be completed before the date of f/s issuance

[Author]

Replies