IAS Treatment

[mahmoodimran]

As per IAS 1 paragraph 64 obligations that are due within 12 months may be classified as long term if the enterprise intends to match the payments from Long Term Funds.

Will it be correct to disclose payments to vendors as long term instead of current liability.

[iahmad]

No basically vendors that relates to the day to day trading can not be shown as long term, however if the vendor represts the capital goods, they can be presented as long term.