Current Liabilities
Code: 2100
👁 Views: 152
Account Information
| Financial Statement | Statement of Financial Position |
| Normal Balance | Credit |
Definition
Short term liabilities due within one year
Sub-accounts
2110
Accounts Payable
2120
Accrued Expenses
2130
Employee Payables
2135
Payroll Liabilities
2140
Retention Payable
2150
Other Payables
2156
Tax Payable
2170
VAT Payable
2180
Customer Advances
📐 IFRS vs US GAAP Accounting Treatment
IFRS
IAS 1
Presentation of Financial Statements
US GAAP
ASC 210
Balance Sheet
❓ Frequently Asked Questions
Q: What are the criteria for classifying a liability as current?
A: A liability is classified as current if: (1) expected to be settled within the normal operating cycle, (2) held for trading purposes, (3) due to be settled within 12 months of the balance sheet date, (4) the entity does not have an unconditional right to defer settlement for more than 12 months.
Q: How is the current portion of a long-term loan reclassified?
A: The amount due within the next year is transferred from non-current liabilities to current liabilities at the end of the financial period.