IASB: New proposals to clarify the classification of liabilities in IAS 1

10 February 2015

The proposed amendments are designed to improve presentation in financial statements by clarifying the criteria for the classification of a liability as either current or non-current.

The IASB published for public comment the ED Classification of Liabilities (Proposed amendments to IAS 1), which clarifies how entities classify debt, particularly when it is coming up for renewal. Comments on the proposed amendments should be sent to the IASB by 10 June 2015.

The proposed amendments:

• Clarify that the classification of a liability as either current or non-current is based on the entity’s rights at the end of the reporting period
• Make clear the link between the settlement of the liability and the outflow of resources from the entity

Press release

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