Deferral of amendments to IAS 1 - Classification of liabilities as current or non-current

In our February 2020 Accounting News, we summarised the International Accounting Standards Board’s (IASB’s) latest amendments to IAS 1 Presentation of Financial Statements in respect of the classification requirements for liabilities as current vs. non-current. In April 2020 Accounting News, we also launched our new eLearning materials on these amendments.

These amendments were meant to apply to annual periods beginning on or after 1 January 2022, with comparatives being restated retrospectively. However, due to the COVID-19 pandemic, the IASB announced on 4 May 2020 that it was proposing to defer the effective date of these amendments by one year until 1 January 2023. No other changes are proposed.

The Australian equivalent of the IASB proposals are contained in ED 301 Classification of Liabilities as Current or Non-current – Deferral of Effective Date, with comments due to the Australian Accounting Standards Board by 22 May 2020 and the IASB by 3 June 2020.