Yomoto Company reports under IFRS. At December 31, 2018, Genesis classified a note payable as a current liability. Under what conditions could Yomoto reclassify the note payable from current to noncurrent?
A. If Yomoto has the intent and ability to reclassify the note before the issuance of the financial statements.
B. If Yomoto has the intent and ability to reclassify the note before the statement of financial position date.
C. If Yomoto has executed an agreement to refinance the note before the statement of financial position date.
D. If Yomoto has executed an agreement to refinance the note before issuance of the financial statements.
Answer:C
Yomoto Company reports under IFRS. At December 31, 2018, Genesis classified a note payable as a current liability. Under what conditions could Yomoto reclassify the note payable from current to noncurrent?
A. If Yomoto has the intent and ability to reclassify the note before the issuance of the financial statements. B. If Yomoto has the intent and ability to reclassify the note before the statement of financial position date. C. If Yomoto has executed an agreement to refinance the note before the statement of financial position date. D. If Yomoto has executed an agreement to refinance the note before issuance of the financial statements.