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06/11/2020 - EFRAG requests comments on its draft endorsement advice on Classification of Liabilities as Current or Non-current and Deferral of Effective Date (Amendments to IAS 1)

​EFRAG is ​​consulting on both its assessment of Classification of Liabilities as Current or Non-current and Deferral of Effective Date (Amendments to IAS 1) (‘the Amendments’) against the technical criteria in the EU and on its assessment of whether the Amendments are conducive to the European public good. Comments are requested by 7 December 2020.


​EFRAG has issued a draft endorsement advice letter and separate invitations to comment relating to the endorsement for use in the EU of Classification of Liabilities as Current or Non-current and Deferral of Effective Date (Amendments to IAS 1) ('the Amendments').

The objective of the Amendments is to clarify one of the criteria in IAS 1 for classifying a liability as non-current - that is, the requirement for an entity to have the right to defer settlement of the liability for at least 12 months after the reporting period.

The Amendments become effective for annual periods beginning on or after 1 January 2023, with earlier application permitted.

EFRAG's overall preliminary assessment is that the Amendments satisfy the criteria for endorsement for use in the EU and therefore recommends its endorsement.

EFRAG is seeking comments on all aspects of its analyses supporting its preliminary conclusions.

Comments are requested by December 2020. You can comment on EFRAG’s draft endorsement advice by clicking on the ‘Comment publication’ link below.

The draft endorsement advice can be found here ​and the invitations to comment here and here​.