QBCC Unpaid Present Entitlements

Q - How do we know whether we can classify unpaid present entitlements as current or non-current?

A - To be recorded as a non current liability, the trust needs an unconditional right to defer settlement of the liability past 12 months (as per AASB 101).  

A - In order to confirm that right, a formal legal agreement needs to be entered into between the trust and the beneficiary, confirming that the amount cannot be called upon or demanded within a 12 month period.