Question

Kline Company refinanced current debt as long-term debt on January 5, 2019. Kline's fiscal year ended on December 31, 2018, and its financial statements will be issued sometime in early March 2019. Under IFRS, how would Kline classify the debt on its December 31, 2018, balance sheet? Multiple Choice
a. In the "mezzanine" between current and noncurrent liabilities.
b. Kline would not classify the debt as current or noncurrent, but rather would write a disclosure note explaining the circumstances.
c. As a current liability.
d. As a noncurrent liability.

Answer 1

Answer:

C.

Explanation:

As a current liability.  Are obligations of the company that are expected to get paid whitin the period of one year and include liabilities such as Accounts payable, short term loans, bank overdraft, interest payable and the other liabilities of the company that are current.