IASB proposes to defer effective date of IAS 1 amendments
04 May 2020
The International Accounting Standards Board (IASB) has 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 3 June 2020.
Background
On 23 January 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 3 June 2020. The shortened comment period of 30 days was approved in a DPOC meeting on 16 April 2020.
Additional information
Please click for:
- IASB press release (link to IASB website)
- Access to the exposure draft on the IASB website
- Our IFRS in Focus newsletter on the ED
- Our IAS Plus project page on Classification of liabilities — Effective date