Which of the following two descriptions would be consistent with classifying a liability as non-current?Group of answer choicesThere is a requirement to pay interest on the outstanding balance and security for the obligation is granted over an asset.The period over which the obligation is settled or discharged is greater than 12 months from balance date and there is a requirement to pay interest on the outstanding balance.Security for the obligation is granted over an asset and the period over which the obligation is settled or discharged is greater than 12 months from balance date.The period over which the obligation is settled or discharged is greater than 12 months from balance date, and the obligation is not considered part of working capital.

The two descriptions that would be consistent with classifying a liability as non-current are:

1. "The period over which the obligation is settled or discharged is greater than 12 months from balance date and there is a requirement to pay interest on the outstanding balance." This is because non-current liabilities are those obligations not due within the next 12 months or within the company's operating cycle if it's longer than a year. The requirement to pay interest on the outstanding balance is a common characteristic of many non-current liabilities, such as bonds payable or long-term loans.

2. "Security for the obligation is granted over an asset and the period over which the obligation is settled or discharged is greater than 12 months from balance date." This is also a characteristic of non-current liabilities. The fact that security is granted over an asset (collateral) is common in long-term loans or mortgages, which are types of non-current liabilities. The obligation being settled or discharged over a period greater than 12 months from the balance date also fits the definition of a non-current liability.

The other options do not necessarily classify a liability as non-current. For example, the requirement to pay interest or the granting of security over an asset can also apply to current liabilities. Similarly, whether an obligation is part of working capital or not does not determine if it's a current or non-current liability.