February 17, 2015

News

IASB proposes amendments to IAS 1 to clarify the criteria for the classification of a liability as either current or non-current

February 17, 2015

The IASB proposes amendments to IAS 1 that, if finalised, will:

  • align the requirements of paragraphs 69(d) and 73 of IAS 1;
  • clarify that the classification of liabilities as current or non-current should be based on rights that are in existence at the end of the reporting period;
  • make the link clear between the settlement of a liability and the outflow of resources from an entity, and explain that the ‘settlement’ of a liability for classification purposes may be achieved in different forms, for example, cash, other assets, services, and in some cases, equity; and
  • reorganise the guidance in IAS 1 with respect to classification of liabilities as current or non-current so that similar examples are grouped together.

The IASB did not propose an effective date for the proposed amendments. However, early application is proposed to be permitted.

Comments on the proposals are due by 10 June 2015. 

IASB proposes amendments to IAS 1 to clarify the criteria for the classification of a liability as either current or non-current

Back to IFRS News

Did you find this useful?