Liability

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October 17, 2021 at 3:33 pm #637890
maximus07
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Professor can you please explain this condition of current liability:

“A company does not have an unconditional right to defer settlement for at least 12 months after the statement of financial position date.”
October 18, 2021 at 7:10 am #638122
John Moffat
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A current liability is a liability that is payable within 12 months of the date of the SOFP.

If they have the right to delay payment more than 12 months, then it becomes a non-current liability.
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