Jasper Inc. has a December 31 year-end. The covenants for Jasper Inc.’s long-term debt A require, among other things, a current ratio (current assets/current liabilities) of at least 1.2. Based on the following financial information, what should the calculation of the current ratio be using US GAAP and IFRS?

a. Current assets are $30 million.

b. Current accrued liabilities are $9 million.

c. Short-term debt at December 31 is $4 million. The treasurer has indicated he intends to get this debt refinanced before its due date in September, but it is unlikely to happen before the financial statements are issued.

d. Long-term debt A of $4 million has equal principal payments over the next four years.

e. Long-term debt B is due in three years and has a principal balance of $6 million. The treasurer discovered a debt covenant violation in November and a waiver was obtained in December.

f. Long-term debt C is due in five years and has a principal balance of $5 million. The treasurer discovered a debt covenant violation in December and a waiver was obtained on the first day of business in January.

g. A provision to settle litigation for $10 million also needs to be recorded in the year-end accounts. It is likely this amount will be paid sometime in the next year. The current pretax discount rate is 10%.

What is the current ratio under IFRS and US GAAP?