IASB Finalizes Amendments to IAS 1 That Clarify the Classification of Liabilities
IASB Finalizes Amendments to IAS 1 That Clarify the Classification of
January 23, 2020
The International Accounting Standards Board (IASB) has issued Classification of
Liabilities as Current or Non-Current — amendments to IAS 1. The
narrow-scope amendments “aim to promote consistency in applying
the requirements by helping companies determine whether, in the statement of
financial position, debt and other liabilities with an uncertain settlement date
should be classified as current (due or potentially due to be settled within one
year) or non-current.”
The amendments clarify — but do not change — existing requirements and are not
expected to significantly affect companies’ financial statements.
The amendments are effective for annual reporting periods beginning on January 1,
2022, and should be applied retrospectively. Earlier application is permitted.