: Classification of liabilities as current or non-current

FASB has been considering the changes made to IAS 1 Presentation of Financial Statements in the Improvements Project relating to classifying a liability as current or non-current when it has been refinanced after the balance sheet date or a waiver of a breach of covenant has been agreed after the balance sheet date.

The FASB continues to support the IAS 1 answer (the liability is classified as current) conceptually but feels unable to move forward due to opposition from constituents who believe they would only become aware of the problem after balance sheet date, when the financial statements are prepared, when it is too late to correct the problem and obtain a non-current classification. The FASB will readdress the issue in its project on financial performance.

The Board agreed not to amend IAS 1.