21/06/2015 - EFRAG's comment letter on the IASB's ED/2015/1 Classification of Liabilities - Proposed amendments to IAS 1
The proposals in the ED aim at clarifying the guidance in IAS 1 Presentation of Financial Statements on classification of liabilities as current or non-current. To do so, the IASB is proposing to clarify:
- that the classification of liabilities as current or non-current should be based on rights that are in existence at the end of the reporting period; and
- the meaning of the term 'settlement' for the purpose of the classification of liabilities.
EFRAG also recommends that additional guidance is provided in certain situations when a right to defer settlement is subject to conditions that are assessed after the reporting period and when the timing of a liability is uncertain.
Finally, EFRAG suggests that the IASB further explores whether current guidance always provides the most relevant information when rights to defer settlement are not substantive.
The final comment letter is available here: