Overriding principle – continuation of Example 2(d)
The situation is the same as in Example 2(d). However, E believes that the application of IAS 1.74 and the resulting classification of the liability as current would not lead to a fair presentation of its financial statements and would be so misleading that it would conflict with the objective of financial statements set out in the Conceptual Framework. Therefore, E wants to apply the overriding principle and classify the liability as non-current.
Required
Assess whether the procedure suggested by E is possible in E”s statement of financial position as at Dec 31, 01.