EFRAG issues draft endorsement advice on 'Classification of Liabilities as Current or Non-current ' and 'Deferral of Effective Date (Amendments to IAS 1)'
20 Nov, 2020
The European Financial Reporting Advisory Group (EFRAG) has issued a draft endorsement advice letter and separate invitations to comment relating to the endorsement for use in the European Union (EU) of 'Classification of Liabilities as Current or Non-current' and 'Deferral of Effective Date (Amendments to IAS 1)' ('the Amendments').
The objective of the amendments is to clarify one of the criteria in IAS 1 for classifying a liability as non-current - that is the requirement for an entity to have the right to defer settlement of the liability for at least 12 months after the reporting period.
EFRAG recommends the endorsement of the Amendments. EFRAG’s initial assessment is that the Amendments meet the technical requirements of the Regulation (EC) No 1606/2002 of the European Parliament and of the Council on the application of international accounting standards.
Comments are required by 07 December 2020.
For more information, see the press release, draft endorsement advice letter, and invitations to comment here and here on the EFRAG website. EFRAG has also updated its endorsement status report to the issuance of the positive draft endorsement advice.
