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Question 1: Which of the following statements in relation to refinancing or rescheduling of liability is true?
I. A liability which is due to be settled w/n 12 mos. after the reporting period is classified as current, even if an agreement to refinance or to reschedule payment on a long-term basis is completed after the reporting period and before the FS are authorized for issue.
II. A liability which is due to be settled w/n 12 mos. after the reporting period is classified as noncurrent, if an agreement to refinance or to reschedule payment on a long-term basis is completed on or before the end of the reporting period.
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