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.

$($b$)$

How would your answer for "Should the debt be reported as a current liability at December $31,2023?"$ be different if Parew prepared

financial statements in accordance with ASPE?

B

I

$U_{?}$

$T_2$

$T^2$

$I_x$