IASB defers effective date of IAS 1 amendments
15 Jul 2020
The International Accounting Standards Board (IASB) has published 'Classification of Liabilities as Current or Non-current — Deferral of Effective Date (Amendment to IAS 1)' deferring the effective date of the January 2020 amendments to IAS 1 by one year.
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 had 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 and published a corresponding exposure draft in May 2020.
The finalised amendment published today defers the effective date of the January 2020 amendments by one year.
Changes
The changes in Classification of Liabilities as Current or Non-current — Deferral of Effective Date 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 continue to be permitted.
Additional information
Please click for:
- IASB press release (link to IASB website)
- IFRS in Focus newsletter explaining the amendment
- Our IAS Plus project page on Classification of liabilities — Effective date