At December 31, 2023, Parew Corporation has a long-term debt of $700,000 owing to its bank. The existing debt agreement imposes several covenants related to Parew’s liquidity and solvency. At December 31, 2023, Parew was not in compliance with the covenants related to its current ratio and debt to total assets ratio; however, the bank was allowing Parew to operate outside of its covenants. Parew prepares financial statements in accordance with IFRS.

(a) Should the debt be reported as a current liability at December 31, 2023?

(b) How would your answer to part (a) be different if Parew prepared financial statements in accordance with ASPE?