BALANCE SHEET
Balance sheet is the list of balances which shows balances of accounts at a particular date
CURRENT/NON-CURRENT DISTINCTION
An entity shall present current and non-current assets, and current and non-current liabilities, as separate classifications on the face of its balance sheet in accordance except when a presentation based on liquidity provides information that is reliable and is more relevant. When that exception applies, all assets and liabilities shall be presented broadly in order of liquidity.
Whichever method of presentation is adopted, for each asset and liability line item that combines amounts expected to be recovered or settled (a) no more than twelve months after the balance sheet date and (b) more than twelve months after the balance sheet date, an entity shall disclose the amount expected to be recovered or settled after more than twelve months.
Current assets
An asset shall be classified as current when it satisfies any of the following criteria:
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It is expected to be realized in, or is intended for sale or consumption in, the entity’s normal operating cycle;
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It is held primarily for the purpose of being traded;
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It is expected to be realized within twelve months after the balance sheet date; or
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It is cash or a cash equivalent (as defined in IAS 7 Cash Flow Statements) unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the balance sheet date.
All other assets shall be classified as non-current.
Current liabilities
A liability shall be classified as current when it satisfies any of the following criteria:
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It is expected to be settled in the entity’s normal operating cycle;
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It is held primarily for the purpose of being traded;
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It is due to be settled within twelve months after the balance sheet date; or
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The entity does not have an unconditional right to defer settlement of the liability for at least twelve months after the balance sheet date.
All other liabilities shall be classified as non-current.