TRADE ASSOCIATES

TRADE ASSOCIATES

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Accounting for Line of Credit Facilities

If you have a line of credit facility, your accountant should review the terms and conditions on the facility to determine the correct classification as current or long term.

While your facility may not have an immediate repayment requirement, this is very different to confirming that there is an unconditional right to defer settlement of the liability. If the liability can be called upon on demand, it must be presented as a current liability under AASB 101 Presentation of Financial Statements.

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