Chapter 6: Statement of financial position

Classification of assets and liabilities as current or non- current

An entity shall present current and non-current assets, and current and non-current liabilities, as separate classifications in its statement of financial position in accordance with except when a presentation based on liquidity provides a more  useful  structured summary. When that exception applies, an entity shall present all assets and liabilities in order of liquidity.

Whichever method of presentation is adopted, an entity shall disclose the amount expected to be recovered or settled after more than 12 months for each asset and liability line item that combines amounts expected to be recovered or settled:

• no more than 12 months after the reporting period; and
• more than 12 months after the reporting period.

When an entity presents current and non-current assets, and current and non-current liabilities, as separate classifications in its statement  of financial position, it shall not classify deferred tax assets (liabilities) as current assets (liabilities).

Current assets

An entity shall classify an asset as current when:

• it expects to realise the asset, or intends to sell or consume it, in its normal operating cycle;
• it holds the asset primarily for the purpose of trading;
• it expects to realise the asset within 12 months after the reporting period; or
• the asset is cash or a cash equivalent (as defined in IAS 7), unless the asset is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.

An entity shall classify all assets other than those specified in as non-current.

Current liabilities

An entity shall classify a liability as current when:

• it expects to settle the liability in its normal operating cycle;
• it holds the liability primarily for the purpose of trading;
• the liability is due to be settled within 12 months after the reporting period; or

it does not have the right at the end of the reporting period to defer settlement of the liability for at least 12 months after the reporting period.

Items to be presented in the statement of financial position or disclosed in the notes

An entity shall present in the statement of financial position line items for:

• property, plant and equipment;
• investment property;
• intangible assets;
• goodwill;
• financial assets (excluding amounts shown under (g), (j) and (k));
• portfolios of contracts within the scope of IFRS 17 that are assets, disaggregated as required by of IFRS 17;
• investments accounted for using the equity method;
• biological assets within the scope of IAS 41 Agriculture;
• inventories;
• trade and other receivables;
• cash and cash equivalents;
• the total of assets classified as held for sale and assets included in disposal groups classified as held for sale in accordance with IFRS 5;
• trade and other payables;
• provisions;
• financial liabilities (excluding amounts shown under (m) and (n));
• portfolios of contracts within the scope of IFRS 17 that are liabilities, disaggregated as required by paragraph 78 of IFRS 17;
• liabilities and assets for current tax, as defined in IAS 12;
• deferred tax liabilities and deferred tax assets, as defined in IAS 12; and
• liabilities included in disposal groups classified as held for sale in accordance with IFRS 5.

An entity shall present in the statement of financial position:

• non-controlling interests; and
• issued capital and reserves attributable to owners of the parent.

Paragraphs B109–B111 set out requirements on how an entity uses its judgment to determine whether to present additional line items in the statement of financial position or disclose items in the notes.

Subject to paragraph 96, this Standard does not prescribe the order or format in which an entity presents items in the statement of financial position. In addition, the descriptions used and the ordering of items or aggregation of similar items may be amended according to the nature of the entity and its transactions, to provide a useful structured summary of the entity’s assets, liabilities and equity. For example, a financial institution may amend the descriptions in paragraph 103 to provide a useful structured summary of the assets, liabilities and equity of a financial institution.