EFRAG final comment letter on deferral of IAS 1 effective date ED
05 Jun, 2020
The European Financial Reporting Advisory Group (EFRAG) has published its final comment letter on the IASB exposure draft ED/2020/3 'Classification of Liabilities as Current or Non-current - Deferral of Effective Date (Proposed amendment to IAS 1)'.
In the final comment letter, EFRAG agrees with the proposals in the exposure draft published on 4 May 2020 that would defer the effective date of the January 2020 amendments to IAS 1 by one year.
EFRAG acknowledges that there may be related operational consequences of the amendments, but opines that the advantages of a deferral during this time of significant disruption due to COVID-19 would outweigh the disadvantages, as earlier application of the amendments will continue to be permitted.
EFRAG also agrees with the IASB's conclusion that no additional disclosure requirements are needed as part of the proposed amendment, as paragraph 30 of IAS 1 will provide for the appropriate requirements.
For more information, see the press release and the final comment letter on the EFRAG website.