As you read the condition i.e.,four condition for showing any assets or liabilities as current liabilities otherwise its a non current.
One condition for current liabilities is that - if the liability is to be settled within 12 months from the reporting date i.e.Balance sheet date then we will consider it current liabilities.
Now for example: If any company has borrowings such as Term loan of Rs.20lakhs & out of which Rs.5 lakhs installment due for payment within 12 months from the reporting date then
We will show Rs.15lakhs under line items of Non current liabilities & else under current liabilities.
As you read the condition i.e.,four condition for showing any assets or liabilities as current liabilities otherwise its a non current.
One condition for current liabilities is that - if the liability is to be settled within 12 months from the reporting date i.e.Balance sheet date then we will consider it current liabilities.
Now for example: If any company has borrowings such as Term loan of Rs.20lakhs & out of which Rs.5 lakhs installment due for payment within 12 months from the reporting date then
We will show Rs.15lakhs under line items of Non current liabilities & else under current liabilities.
As you read the condition i.e.,four condition for showing any assets or liabilities as current liabilities otherwise its a non current.
One condition for current liabilities is that - if the liability is to be settled within 12 months from the reporting date i.e.Balance sheet date then we will consider it current liabilities.
Now for example: If any company has borrowings such as Term loan of Rs.20lakhs & out of which Rs.5 lakhs installment due for payment within 12 months from the reporting date then
We will show Rs.15lakhs under line items of Non current liabilities & else under current liabilities.
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