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IFRS® Accounting Standards

Non-current Liabilities with Covenants – Proposed Amendments to IAS 1

Summary

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

The IASB is proposing to revise amendments issued in 2020 and address concerns raised by respondents about a tentative agenda decision issued by the IFRS Interpretations Committee. The decision explains how to apply the amendments to particular fact patterns.

Staff Contact(s)

Andrew White, CPA, CA Associate Director, Accounting Standards Board

Project Status

  • Information gathering

    Completed prior to June 2021

  • Approving project

    The project was approved in June 2021

  • Consulting stakeholders

    IASB Exposure Draft  issued in November 2021

    AcSB Exposure Draft, which corresponds to the IASB Exposure Draft, issued in December 2021

  • Deliberating feedback
  • Final pronouncement

News


December 16, 2021

News, Document for Comment

AcSB Exposure Draft — Non-current Liabilities with Covenants – Proposed Amendments to IAS 1

The AcSB issued its Exposure Draft that corresponds to the IASB’s Exposure Draft on this topic. Canadian stakeholders who would like their feedback considered prior to the AcSB finalizing its comment letter are encouraged to submit their comments to the AcSB by March 4, 2022.

December 3, 2021

International Activity

IASB Exposure Draft – Non-current Liabilities with Covenants

The IASB has proposed amendments to IAS 1 Presentation of Financial Statements to improve the information companies provide about long-term debt with covenants. The proposals aim to improve the information a company provides about non-current liabilities with covenants by enabling investors to assess whether such liabilities could become repayable within 12 months. Canadian stakeholders are encouraged to submit their comments to the IASB by March 21, 2022.

Meeting & event summaries


March 8, 2022

AcSB Decision Summary – February 23, 2022

The AcSB discussed its draft response letter to the International Accounting Standards Board’s Exposure Draft, “Non-current Liabilities with Covenants,” and provided staff with comments to incorporate into the final letter. The Board will submit its response letter by the March 21, 2022, deadline.

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 ballot process.