IASB to issue amendments to IAS 1 Non-current Liabilities with Covenants on 31 October 2022
28 October 2022
The IASB expects to issue amendments to IAS 1 Non-current Liabilities with Covenants on 31 October 2022.
In January 2020, the IASB had issued amendments to IAS 1, which clarified how an entity classifies liabilities as current or non-current. The amendments were effective for the annual reporting periods beginning on or after 1 January 2023. BDO issued an IFR Bulletin on these amendments, which is available here.
In response to feedback and enquiries from stakeholders, in December 2020, IFRIC issued a Tentative Agenda Decision (TAD), which analysed the applicability of the amendments to three scenarios. However, due to the feedback received and various concerns raised about the outcome of applying the amendment, IFRIC did not finalise the tentative agenda decision. The IFRIC reported the feedback to the IASB, highlighting new information that the IASB had not considered when developing the amendments.
Having considered the new information, the IASB decided to propose the narrow-scope amendments to IAS 1. The exposure draft of the proposed amendment was issued in November 2021, with comment period ending on 21 March 2022. Having considered the feedback, the IASB expects to issue the final amendment on 31 October 2022.
The press release by the IASB may be accessed here.