IAS 1 — Classification of liabilities


This project seeks to develop a more general approach to the classification of liabilities under IAS 1 Presentation of Financial Statements, which is based on the contractual arrangements in place at the reporting date.

This project arose out of the annual improvements project 2010 -2012 cycle. Exposure Draft ED/2012/1 Annual Improvements to IFRSs (2010—2012 Cycle), published in May 2012, proposed the following amendments to paragraph 73 of IAS 1:

If an entity expects, and has the discretion, to refinance or roll over an obligation for at least twelve months after the reporting period under an existing loan facility with the same lender, on the same or similar terms, it classifies the obligation as non-current, even if it would otherwise be due within a shorter period. ...

During 2013, the IASB decided not to finalise the amendment, but instead pursue a narrow-scope project to refine the existing guidance in IAS 1 on when liabilities should be classified as current.

In April 2016, the Board paused work on this project while it finalised revisions to the definitions of assets and liabilities in its Conceptual Framework for Financial Reporting. At its September 2018 meeting, the IASB reactivated the project. The next project step will be finalised amendments to IAS 1.


Current status of the project

This project has been completed. The IASB issued Classification of Liabilities as Current or Non-current (Amendments to IAS 1) on 23 January 2020.


Project milestones

Date Development Comments
3 May 2012 Exposure Draft ED/2012/1 Annual Improvements to IFRSs (2010—2012 Cycle) published Comment deadline 5 September 2012
March 2013 IASB agrees to pursue the suggested amendments to IAS 1 as a narrow-scope project in its own right
10 February 2015 Exposure Draft ED/2015/1 Classification of Liabilities (Proposed amendments to IAS 1) published
Comments requested by 10 June 2015
April 2016
Project paused
September 2018 Project reactivated
23 January 2020 Classification of Liabilities as Current or Non-current (Amendments to IAS 1) issued Effective for annual reporting periods beginning on or after 1 January 2022

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