BDO has published IFR Bulletin 2024/02 Amendments to IAS 1 – Clarification of the Meaning of ‘Settlement’ in the Classification of Liabilities.
The IASB issued amendments to IAS 1 Presentation of Financial Statements in January 2020 (Classification of Liabilities as Current or Non-current). The amendments, among other changes, clarified the meaning of 'settlement' for the purpose of classifying a liability as current or non-current. The amendments are applicable for annual reporting periods beginning on or after 1 January 2024.
BDO’s IFR Bulletin analyses the effect of these amendments on the classification of liabilities as current or non-current, particularly in case of hybrid financial instruments (e.g. convertible debt), with American-style conversion options, which may be significantly affected by these amendments.
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Source BDO Global
