Question

Please let me know relavant IAS for Prepaid Expenses under IFRS

Comments

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

Answer 1

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.