Under$$ IFRS, can companies reclassify$$ short$-$term debt expected to be refinanced on a$$ long$-$term basis during the$$ post$-$balance sheet period as$$ long$-$term debt? Explain.

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Part $1$

A$.$

Under$$ IFRS, a company can reclassify$$ short$-$term debt as$$ long$-$term when it does not expect to refinance the debt for at least eighteen months after the reporting period under a new arrangement to provide refinancing.

B$.$

Under$$ IFRS, a company can reclassify$$ short$-$term debt as$$ long$-$term when it does not have the discretion to refinance the debt for at least eighteen months after the reporting period under a new arrangement to provide refinancing.

C$.$

Under$$ IFRS, a company cannot reclassify$$ short$-$term debt.

D$.$

Under$$ IFRS, a company can reclassify$$ short$-$term debt as$$ long$-$term when it both expects and has the discretion to refinance the debt for at least twelve months after the reporting period under an existing arrangement to provide refinancing.