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1 mark

Trade payables to be settled beyond 12 months from the date of Balance Sheet or beyond the operating cycle are classified under which main head/sub-head?

  1. A
    Long-term provisions
  2. B
    Other long-term liabilities
  3. C
    Deferred tax liabilities
  4. D
    Long-term Borrowings

Solution & Step-by-step Explanation

As per Schedule III of the Companies Act, 2013, current liabilities that fail the 12-month or operating cycle settlement timeframe are reclassified into Non-Current Liabilities. Within Non-Current Liabilities, obligations like long-term trade payables are placed under the sub-head Other long-term liabilities.

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Trade payables to be settled beyond 12 months from the date of Balance Sheet or beyond the operating cycle are classified under which main head/sub-head?
A
Long-term provisions
B
Other long-term liabilities
C
Deferred tax liabilities
D
Long-term Borrowings

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