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.
The objective of this project is to clarify the criteria for the classification of a liability as either current or non-current by:
- clarifying that the classification of a liability as either current or non-current is based on the entity’s rights at the end of the reporting period; and
- making clear the link between the settlement of the liability and the outflow of resources from the entity.
The AcSB’s due process includes ensuring that Canadian entities’ financial reporting needs are considered by the IASB and issuing the AcSB’s own exposure draft on each IASB proposal. Subject to the responses to the AcSB’s exposure draft on whether the IASB’s proposals are appropriate for application in Canada, the AcSB expects that the amendments will be incorporated into Canadian GAAP in accordance with the AcSB’s strategy of adopting IFRSs for publicly accountable enterprises.