in General IFRS Discussion by
Please let me know relavant IAS for Prepaid Expenses under IFRS
by Level 2 Member (3.0k points)

A prepaid expense is an expenditure paid for in one accounting period, but for which the underlying asset will not be consumed until a future period. When the asset is eventually consumed, it is charged to expense. If consumed over multiple periods, there may be a series of corresponding charges to expense.

There is no standard for prepaid Expense

But

Classifying transactions into asset and liability group, under the IAS 1

Please log in or register to answer this question.

1 Answer

0 like 0 dislike
by
selected by
 
Best answer

IAS 1 states classification of assets and liabilities. A prepaid expense is carried on the balance sheet of an organization as a current asset until it is consumed Prepaid Expenses are assets created by the prepayment of cash or incurrence of a liability. Prepaid expenses expire and become expenses with the passage of time, use, or events, for example: prepaid rent, prepaid insurance and deferred taxes.

Welcome to AccountantAnswer Forum, where you can ask questions and receive answers on Accounting-related questions.

Get AccountantAnswer App

Categories



...