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IFRS® Accounting Standards

Classification of Liabilities (Amendments to IAS 1)

Summary

The Accounting Standards Board (AcSB) is participating in the International Accounting Standards Board’s (IASB) project to amend International Accounting Standard (IAS) 1 Presentation of Financial Statements.

Staff Contact(s)

Danielle MacLeod, CPA, CA Associate Director, Accounting Standards Board

Phone number  +1 416 204 3951
Email address  [email protected]

Project Status

  • Information gathering

    Completed prior to April 2015

  • Approving project

    The IASB approved the project in April 2015

  • Engaging Communities

    IASB Exposure Draft issued in February 2015

    AcSB Exposure Draft, which corresponds to the IASB Exposure Draft, issued in March 2016

    Public outreach took place between February 2015–June 2015

    The AcSB consulted with its IFRS Discussion Group and User Advisory Council between February 2015–June 2015

  • Deliberating feedback

    The IASB resumed discussions on the proposed amendments to classification requirements in paragraphs 69–76 of IAS 1 Presentation of Financial Statements in September 2018

    IASB and AcSB are deliberating comments on their Exposure Drafts

  • Final pronouncement

    The IASB issued the final amendments in January 2020

    The AcSB endorsed the IASB’s amendments and they have been incorporated into Part I of the CPA Canada Handbook – Accounting, with an effective date of January 1, 2022

    In July 2020 the IASB issued the final amendment to defer the effective date to annual reporting periods beginning on or after January 1, 2023

    The AcSB endorsed the IASB’s final amendment and it has been incorporated into Part I of the CPA Canada Handbook – Accounting, with an effective date of January 1, 2023

Reply Now

The deadline to respond to the AcSB and the IASB on the Exposure Draft, Classification of Liabilities as Current or Non-Current – Deferral of Effective Date (Proposed amendment to IAS 1) are the same. If you want the AcSB to consider your comments prior to finalizing its own comment letter to the IASB on this Exposure Draft, please submit your comment letter to the AcSB in advance of the June 3, 2020 deadline.

Submit Comments

News

October 1, 2020

News

AcSB endorses IASB’s amendment to defer effective date of Classification of Liabilities as Current or Non-Current (Amendments to IAS 1)

The amendment, which defers the effective date of Classification of Liabilities as Current or Non-current (Amendments to IAS 1) by one year, is now in Part I of the CPA Canada Handbook. The amendments to IAS 1 are effective for annual reporting periods beginning on or after January 1, 2023. Earlier application is permitted.

July 24, 2020

International Activity

Update – IASB defers effective date of Amendments to IAS 1

On July 15, 2020 the IASB issued an amendment to defer the effective date of Classification of Liabilities as Current or Non-current (Amendments to IAS 1) by one year. The AcSB will complete its endorsement process to incorporate the amendment into Part I of the CPA Canada Handbook – Accounting.

April 21, 2020

International Activity

UPDATE – IASB amends workplan and timelines

On April 17, 2020, the IASB voted to issue an Exposure Draft with a 30-day comment period proposing to extend by one year the effective date of an amendment to IAS 1 Presentation of Financial Statements. The IASB also decided to extend by three months the comment period for: Exposure Draft, General Presentation and Disclosures, Request for Information Comprehensive Review of the IFRS for SMEs Standard and Discussion Paper, Business Combinations – Disclosures, Goodwill and Impairment. The IASB also deferred the timelines for various upcoming consultation documents and final amendments.  See the IASB’s workplan for more information.

April 2, 2020

News

AcSB endorses Classification of Liabilities as Current or Non-Current (Amendments to IAS 1)

The amendments, which clarify how to classify liabilities as current or non-current, are now in Part I of the CPA Canada Handbook – Accounting, and are effective for annual reporting periods beginning on or after January 1, 2022. Earlier application is permitted.

February 5, 2020

International Activity

IASB issues Classification of Liabilities as Current or Non-Current (Amendments to IAS 1)

The amendments clarify one of the criteria for classifying a liability as non-current – that is, the right to defer settlement for at least 12 months after the reporting date. The AcSB will incorporate the amendments into the CPA Canada Handbook upon completion of its due process activities.

Disclaimer

This project summary has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further Board deliberations. Decisions to publish Handbook material are final only after a formal voting process.