Deferral of amendments to IAS 1 - Classification of liabilities as current or non-current
In our March 2020 Accounting Alert, we summarised the International Accounting Standards Board’s (IASB’s) latest amendments to IAS 1 Presentation of Financial Statements in respect of the classification requirements for liabilities as current vs. non-current.
These amendments were meant to apply to annual periods beginning on or after 1 January 2022, with comparatives being restated retrospectively. However, due to the COVID-19 pandemic, the International Accounting Standards Board (IASB) announced on 4 May 2020 that it was proposing to defer the effective date of these amendments by one year until 1 January 2023. No other changes are proposed.
If the effective date of the amendment is deferred by the IASB, the New Zealand Accounting Standards Board will follow suit with deferring the New Zealand equivalent amending standard.
For more on the above, please contact your local BDO representative.