Classification of Liabilities as Current or Non-Current
23. Februar 2021
IAS 1 Presentation of Financial Statements requires entities that prepare a classified statement of financial position to present liabilities as either current or non-current.
IAS 1.69 requires a liability to be classified as current if any one of the following four criteria are met:
(a) It expects to settle the liability in its normal operating cycle;
(b) It holds the liability primarily for the purpose of trading;
(c) The liability is due to be settled within twelve months after the reporting period; or
(d) It does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting period (see paragraph 73). Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.
If any of these criteria are met, the liability must be classified as current.
COVID-19 has resulted in significant financial difficulties for many entities, including significant liquidity constraints. These effects have highlighted the importance of classifying liabilities correctly, as doing so provides users with important information about liabilities that will or may require settlement in the next 12 months.
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