Accrual and classification of long-term loan interest Steps:

• Identify loan principal of $30,000 due in 10 years from November 2021, remaining over 9 years at 30 April 2022, classifying it as non-current liability.
• Compute annual interest: $30,000 × 6$1,800; since no interest paid by 30 April 2022, accrue full amount for the period as current liability.
• Separate principal and interest per accrual accounting: interest due soon is current, principal is non-current.
• Record in statement of financial position: current liabilities $1,800, non-current liabilities$30,000.

Why B is correct:

• IAS 1 requires liabilities classified by settlement timing; accrued interest settles within 12 months (current), principal beyond (non-current).

Why the others are wrong:

• A: Omits accrued interest, violating accrual basis of accounting (IAS 1 and conceptual framework).
• C: Likely nets interest against principal (e.g., showing $28,200 non-current), but interest is a separate current liability.
• D: Misclassifies long-term principal as current, ignoring 10-year term.

Final answer: B