Rajin Bhd has a RM50,000 short-term obligation due on 1 March 2020. The Manager discussed with its lender to extend the payment to 1 March 2022. The company’s reporting date is on 31 December 2019 and the financial statements are authorised for issuance on 1 April 2020. REQUIRED: Discuss how the date of the agreement signed to extend the loan terms of the obligation’s maturity from 1 February 2020, to 1 March 2022 affected the classification of said obligation as current liability or non-current liability
Rajin Bhd has a RM50,000 short-term obligation due on 1 March 2020. The Manager discussed with its lender to extend the payment to 1 March 2022. The company’s reporting date is on 31 December 2019 and the financial statements are authorised for issuance on 1 April 2020. REQUIRED: Discuss how the date of the agreement signed to extend the loan terms of the obligation’s maturity from 1 February 2020, to 1 March 2022 affected the classification of said obligation as current liability or non-current liability
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Rajin Bhd has a RM50,000 short-term obligation due on 1 March 2020. The Manager discussed with its lender to extend the payment to 1 March 2022. The company’s reporting date is on 31 December 2019 and the financial statements are authorised for issuance on 1 April 2020.
REQUIRED:
Discuss how the date of the agreement signed to extend the loan terms of the obligation’s maturity from 1 February 2020, to 1 March 2022 affected the classification of said obligation as current liability or non-current liability
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