The incorrect statement is As per Schedule III, a liability should be classified as current when it is due to be settled within twelve months after the reporting date. As per Schedule Ill, liability shall be classified as current when it satisfies any of the following criteria:”it is expected to be settled in the companys normal operating cycle;it is held primarily for the purpose of being traded;it is due to be settled within twelve months after the reporting date; orthe company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification. All other liabilities shall be classified as non-current. Liability means financial obligations of an enterprise other than owners' funds. Current liability is financial obligations of a business entity that falls due for payment in a relatively short period, normally not more than 12 months.