IASB proposes to defer effective date of IAS 1 amendments
May 04, 2020
On May 4, 2020, the International Accounting Standards Board (IASB) published an exposure draft "Classification of Liabilities as Current or Non-current — Deferral of Effective Date (Proposed amendment to IAS 1)" proposing to defer the effective date of the January 2020 amendments to IAS 1 by one year. Comments are requested by June 3, 2020.
Background
On January 23, 2020, the IASB issued Classification of Liabilities as Current or Non-Current (Amendments to IAS 1) providing a more general approach to the classification of liabilities under IAS 1, Presentation of Financial Statements based on the contractual arrangements in place at the reporting date. The amendments currently have an effective date of 1 January 2022.
In April 2020, the IASB held a supplementary IASB meeting to consider COVID-19-related matters including the Board's timelines in view of the COVID-19 pandemic. The Board tentatively decided to delay by one year the effective date of Classification of Liabilities as Current or Non-Current (Amendments to IAS 1) to annual reporting periods beginning on or after 1 January 2023.
The proposed amendment published today is solely seeking to delay the effective date of the January 2020 amendments by one year.
Suggested changes
The changes proposed in ED/2020/3 Classification of Liabilities as Current or Non-current — Deferral of Effective Date (Proposed amendment to IAS 1) would defer the effective date of Classification of Liabilities as Current or Non-Current (Amendments to IAS 1) to annual reporting periods beginning on or after 1 January 2023. Earlier application of the January 2020 amendments would continue to be permitted.
Comment period
Comments on the exposure draft are requested by June 3, 2020. The shortened comment period of 30 days was approved in a DPOC meeting on April 16, 2020.
Additional information
