IASB Issues Classification of Liabilities as Current or Non-Current

IASB Issues Classification of Liabilities as Current or Non-Current

IASB Issues Classification of Liabilities as Current or Non-Current

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IASB Issues Classification of Liabilities as Current or Non-Current

Let’s start with a little bit of background. IAS 1 states that if a company has an unconditional right to delay settlement of a liability for at least 12 months from the end of the reporting period. Then it can be classified as non-current, if not it is classified as current. Many people have found said statement confusing and consequently similar liabilities have been classified differently, making comparisons by investors difficult. Therefore, IASB Issues Classification of Liabilities as Current or Non-Current with the aim to rectify the above issue.

Find out what the amendments are by downloading our latest CityPaper.