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Why is deferred income considered a liability and also can you please shed some light on the issue of non current liability and current liability concerning deferred income?
Hi,
It is a liability due to the fact that if it was to be reclaimed by the government then it would be paid back.
As the money has been received for a period of more than a year at the reporting date we need to look at what it released in the following reporting period (current) and that to be released after the next period (non-current).
Thanks
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