IFRS Accounting Standards In Practice- Classification of Loans as Current or Non-Current (2024/2025)
IFRS Accounting Standards In Practice- Classification of Loans as Current or Non-Current (2024/2025)
BDO has published IFRS Accounting Standards In Practice – Classification of Loans as Current or Non-current (2024/2025).
The IASB issued amendments to IAS 1 Presentation of financial Statements in January 2020 (Classification of Liabilities as Current or Non-current) and subsequently, in October 2022 (Non-current Liabilities with Covenants). The amendments, among other changes, introduced certain requirements related to determination of the existence of a right at the end of the reporting period to defer settlement of a liability with covenants. These amendments are effective for annual reporting periods beginning on or after 1 January 2024.
BDO’s publication provides an overview of the requirements of IAS 1 related to the classification of loans with covenants as current or non-current. It also includes a flow chart to help in determining this classification, along with application of the flow chart to multiple scenarios.
The IASB issued amendments to IAS 1 Presentation of financial Statements in January 2020 (Classification of Liabilities as Current or Non-current) and subsequently, in October 2022 (Non-current Liabilities with Covenants). The amendments, among other changes, introduced certain requirements related to determination of the existence of a right at the end of the reporting period to defer settlement of a liability with covenants. These amendments are effective for annual reporting periods beginning on or after 1 January 2024.
BDO’s publication provides an overview of the requirements of IAS 1 related to the classification of loans with covenants as current or non-current. It also includes a flow chart to help in determining this classification, along with application of the flow chart to multiple scenarios.