ACTG 3110 Chapter Notes - Chapter 4: Financial Statement, Current Liability, Deferred Tax
Document Summary
Chapter 4: statements of financial position and changes in equity; disclosure notes. Statement of financial position (balance sheet) a summary statement of the assets and liabilities of an organization at a single point in time. Line items to be shown on the sfp. Ifrs permits two methods of classifying assets and liabilities on the sfp: Liabilities included in disposal groups classified as held-for-sale. In order of liquidity, either decreasing or increasing. Operating cycle: the average length of time from the expenditure of cash for inventory or raw materials, to the point of sale and the collection of accounts receivable. Current asset: an asset that is expected (or available) to be converted into cash or to be used in production within one year or the operating cycle, whichever is longer. Current liability: a liability that is due within one year or the operating cycle, whichever is longer.
