22. May 2020
In its comment letter, the ASCG supports the IASB’s proposal to defer the effective date of the Amendments to IAS 1 Classification of Liabilities as Current or Non-current by one year to annual reporting periods beginning on or after 1 January 2023. The ED proposes, in response to the covid-19 pandemic, to defer the effective date of the Amendments to IAS 1 to provide entities with more time to implement any classification changes resulting from the amendments.
In January 2020, the IASB issued Classification of Liabilities as Current or Non-Current (Amendments to IAS 1). These narrow-scope amendments clarify that the classification of liabilities as current or non-current requires an assessment of whether an entity has the right to defer settlement of a liability and not whether the entity will exercise that right, i.e. classification is unaffected by management intentions or expectations.