At the reporting date for Year $1,$ Entity A had a loan from its financial institution that was expected to settle within six months. The loan term was renegotiated after the reporting date and before the authorisation date of the financial statements and the repayment date was extended by two years. For financial statement presentation of Year $1,$ this loan is classified by Entity A as a$/$an: $1.$ off$-$statement of financial position liability. $2.$ current liability. $3.$ non$-$current liability. $4.$ contingent liability.