EFRAG Endorsement Status Report reflects amendments to IAS 1

The European Union has published a Commission Regulation endorsing the following Amendments to IAS 1 Presentation of Financial Statements:

Classification of Liabilities as Current or Non-current;
Classification of Liabilities as Current or Non-current - Deferral of Effective Date; and
Non-current Liabilities with Covenants.

The amendments specify the requirements to classify a loan arrangement as current or non-current when it is subject to covenants. The amendments also clarify the meaning of ‘settlement’ when classifying a liability as current or non-current and provide for disclosure requirements when an entity has loan arrangements with covenants that could require the loan arrangement to become payable within twelve months after the reporting period.
The amendments are effective for annual reporting periods beginning on or after 1 January 2024, with earlier application permitted.
The updated Endorsement Status Report may be accessed here.