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.
The proposed amendments clarify that the conditions with which an entity must comply after the reporting period would not affect classification of a liability as current or non-current. Entities would present separately, and disclose information about, non-current liabilities subject to conditions within twelve months after the reporting period.
The IASB concluded that the proposed amendments would improve the information an entity provides about the conditionality associated with its right to defer settlement of a liability for at least twelve months, while also addressing concerns raised by respondents.
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 IFRS® Standards for publicly accountable enterprises.