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IASB publishes proposals to clarify the way in which liabilities are classified

 10 February 2015

The International Accounting Standards Board (IASB) today published for public comment the Exposure Draft Classification of Liabilities (Proposed amendments to IAS 1), which clarifies how entities classify debt, particularly when it is coming up for renewal.

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 proposed amendments do this by:

  1. clarifying 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; and
  2. making clear the link between the settlement of the liability and the outflow of resources from the entity.

The proposals are open for public comment for 120 days. Comments on the proposed amendments should be sent to the IASB by 10 June 2015. The Exposure Draft can be accessed from the Open for comment section of the IFRS website.




Notes to editors

  • These are proposed clarifications to the classification of liabilities element of IAS 1 Presentation of Financial Statements.
  • The proposals come out of an initiative identified and considered by the IFRS Interpretations Committee.


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