BDO releases IFR Bulletin 2021/06 – Classification of Liabilities as Current or Non-Current: FAQs
19 February 2021
BDO has released IFR Bulletin 2021/06 summarising the current requirements of IFRS for classifying liabilities as current or non-current.
COVID-19 has resulted in significant financial difficulties for many entities, which has raised questions about how financial liabilities like bank loans should be classified. The publication includes over a dozen examples of how entities should classify liabilities, including the effects of covenants, changes to covenants, rollover provisions, convertible notes and other common scenarios should be accounted for.
The publication may be accessed here.