Question

A company refinances a short-term loan (due in 4 months) after the balance sheet date but before the financial statements are authorised. Management argues it should classify the loan as non-current since refinancing is completed. How should this be treated?

A Non-current because refinancing occurred before approval.
B Current because refinancing was not in place at reporting date.
C Non-current because intent to refinance was present.
D Current only if the lender was unwilling to extend.
E Split between current and non-current.
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