I'm preparing now for the exam ACCA F7.
I have a question relating to the chapter 9 - Leases in Caplan publishing.
In Test your understanding 5 the correct answer to the question 2 is D - current liab = 10 000, non-curr liab = 9 091.
Can you please explain why?
Following the calculation the Liability at the end of the first year is 19 091 from which 10 000 relates to the balance of the 2nd year and therefore to non-current liability.
Another question relates to the chapter 10 - Fin assets and liabilities.
On the page 238 – answer to the test your understanding 1 – in the statement of fin.position the liabilities of the 1st year are shown as non-current and liabilities of the 2nd year are shown as current.
Can please someone explain why?
As I understand, current liabilities is something you need to pay within 12 months, non-current - longer than 12 months. Does it differ for leases and fin.instruments?