[Anonymous]

NINJA Question –

In my ninja notes, it says a current liability can be re-financed into a noncurrent liability under IFRS if an agreement is executed before the balance sheet date. Under GAAP, you just need intent, not an agreement.

In my Becker book, I believe it says that you cannot go from a current to noncurrent liability, but with GAAP, you can, and need to both intent and an agreement. Can someone clear this up?

[MustPass1988]

Under US GAAp, you can refinance from current to LT liability, if you have the intent to refinance and also have the ability to do so. Under IFRS, you can't reclass the liability unless you have actually refinanced. So basically, your intent doesn't matter under IFRS..you actually have to refinance before the BS date or you have to keep the liability as current

AUD: PASSED [81]; Expired, retaking August 23rd
BEC: PASSED [83]; Expired, retaking July 11th
REG: PASSED [83]
FAR: FAILED [64]; Retaking May 23rd

[MustPass1988]

Under US GAAp, you can refinance from current to LT liability, if you have the intent to refinance and also have the ability to do so. Under IFRS, you can't reclass the liability unless you have actually refinanced. So basically, your intent doesn't matter under IFRS..you actually have to refinance before the BS date or you have to keep the liability as current

AUD: PASSED [81]; Expired, retaking August 23rd
BEC: PASSED [83]; Expired, retaking July 11th
REG: PASSED [83]
FAR: FAILED [64]; Retaking May 23rd

[Author]

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