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    Current Assets PAS 1 Paragraph 66 Provides That An Entity Should

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    Mark Edgar De Guzman
    The document provides guidance on classifying assets and liabilities as current or non-current according to PAS 1. For assets to be classified as current, they must be cash equivalents, held for trading purposes, expected to be realized within 12 months, or expected to be used or consumed within the normal operating cycle. For liabilities, classification as current requires settlement within the normal operating cycle, being held for trading purposes, being due within 12 months, or not having an unconditional right to defer settlement for at least 12 months.

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    Current Assets PAS 1 Paragraph 66 Provides That An Entity Should

    Uploaded by

    Mark Edgar De Guzman
    27 views1 page
    The document provides guidance on classifying assets and liabilities as current or non-current according to PAS 1. For assets to be classified as current, they must be cash equivalents, held for trading purposes, expected to be realized within 12 months, or expected to be used or consumed within the normal operating cycle. For liabilities, classification as current requires settlement within the normal operating cycle, being held for trading purposes, being due within 12 months, or not having an unconditional right to defer settlement for at least 12 months.

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    pas 1 66 and 69

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    The document provides guidance on classifying assets and liabilities as current or non-current according to PAS 1. For assets to be classified as current, they must be cash equivalents, held for trading purposes, expected to be realized within 12 months, or expected to be used or consumed within the normal operating cycle. For liabilities, classification as current requires settlement within the normal operating cycle, being held for trading purposes, being due within 12 months, or not having an unconditional right to defer settlement for at least 12 months.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    27 views1 page

    Current Assets PAS 1 Paragraph 66 Provides That An Entity Should

    Uploaded by

    Mark Edgar De Guzman
    The document provides guidance on classifying assets and liabilities as current or non-current according to PAS 1. For assets to be classified as current, they must be cash equivalents, held for trading purposes, expected to be realized within 12 months, or expected to be used or consumed within the normal operating cycle. For liabilities, classification as current requires settlement within the normal operating cycle, being held for trading purposes, being due within 12 months, or not having an unconditional right to defer settlement for at least 12 months.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    Download as docx, pdf, or txt
    of 1

    CURRENT ASSETS

    PAS 1 paragraph 66 provides that an entity should


    classify asset as current asset when:

    a. The asset is cash or cash equivalent unless the asset is restricted


    from being exchanged or used to settle a liability for at least 12
    months after the reporting period.

    b. The entity holds the asset primarily for the purpose of trading.

    c. The entity expects to realize the asset within twelve months


    after the reporting period.

    D. the entity expects to realize the asset or intends to use or


    consume it within the entity’s operating cycle.

    CURRENT LIABILITIES
    PAS 1 paragraph 69 provides that an entity should
    classify a liability as current when:

    A. The entity expects the liability to settle within the entity’s


    normal operating cycle.

    B. the entity holds the liability primarily for the purpose of trading.

    C. the liability is due to be settled within 12 months after the


    reporting period.

    D. the entity does not have an unconditional right to defer


    settlement of the liability for at least 12 months after the
    reporting period.

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