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3 The current/non-current distinction
You should appreciate the distinction between current and non-current assets and liabilities and their different treatments.

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   The current/non-current distinction
   

An entity must present current and non-current assets as separate classifications on the face of the statement of financial position. A presentation based on liquidity should only be used where it provides more relevant and reliable information, in which case all assets and liabilities must be presented broadly in order of liquidity. (IAS 1: para. 60)
In either case, the entity should disclose any portion of an asset or liability which is expected to be recovered or settled after more than 12 months. For example, for an amount receivable which is due in instalments over 18 months, the portion due after more than 12 months must be disclosed.
(IAS 1: para. 61)
The IAS emphasises how helpful information on the operating cycle is to users of financial statements. Where there is a clearly defined operating cycle within which the entity supplies goods or services, then information disclosing those net assets that are continuously circulating as working capital is useful.
(IAS 1: para. 62)
This distinguishes them from those net assets used in the long-term operations of the entity. Assets that are expected to be realised and liabilities that are due for settlement within the operating cycle are therefore highlighted. (IAS 1: para. 62)

The liquidity and solvency of an entity is also indicated by information about the maturity dates of assets and liabilities. As we will see later, IFRS 7 Financial Instruments: Disclosures requires disclosure of maturity dates of both financial assets and financial liabilities. (Financial assets include trade and other receivables; financial liabilities include trade and other payables.) (IAS 1: para. 63)

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