Date posted: 17/02/2021 2 min read

Joint submission on IFRIC’s interpretation of revised IAS 1

CA ANZ and CPA seeks revision of IFRIC’s interpretation of the revised current/ non-current requirements in IAS 1

CA ANZ and CPA Australia have lodged a submission expressing concern that IFRIC’s draft interpretation of the recently revised current/ non current requirements in IAS 1 ignores important issues.

If issued as proposed, we are concerned that a substantial number of loans subject to conditions would need to be classified as current when the economic substance of the agreements entered into by entities and lenders is that they are non-current.

The submission also recommends that the aspects of the classification amendments in IAS 1 be reconsidered by the IASB as the issues raised point to further practical difficulties in applying the new requirements which come into force in 2023.