IASB Proposes Deferring IAS 1 Amendments’ Effective Date due to COVID-19. The IASB is proposing to defer by one year the effective date of Classification of Liabilities as Current or Non-current, which amends IAS 1 Presentation of Financial Statements.
The IAS 1 amendments were issued in January 2020, effective for annual reporting periods beginning on or after January 1, 2022. However, in response to the COVID-19 pandemic, the IASB is proposing to provide companies with more time to implement any classification changes resulting from the amendments by deferring the effective date by one year to annual reporting periods beginning on or after January 1, 2023.
Although the IASB proposes deferring Classification of Liabilities as Current or Non-current, the IASB is not proposing any changes to the original amendments other than the deferral of the effective date.
The IASB has responded quickly to provide support to stakeholders at this difficult time. Accordingly, the comment period on the proposal is short, only 30 days. The comment deadline is June 3, 2020.
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