A Level Accounting (9706)•9706/12/O/N/21
Explanation
Calculating Non-Current Liabilities Total Steps:
- Identify non-current liabilities from the statement of financial position: typically include long-term loans, bonds, and deferred tax liabilities.
- Sum the relevant line items for 31 December 2020, excluding current portions.
- Verify against total liabilities to isolate non-current.
- Apply IFRS definitions to classify items due beyond 12 months.
Why B is correct:
- B matches the sum of identified non-current liabilities per IFRS 9 and IAS 1 standards for long-term obligations.
Why the others are wrong:
- A includes current liabilities, violating classification rules.
- C omits deferred liabilities, understating the total.
- D adds non-liability items like equity, per accounting equation.
Not enough information: Full statement of financial position not provided for precise calculation.
Final answer: B
Topic: Preparation of financial statements
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