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12 Feb. 2015

AASB issues new Exposure Draft ED 259

The AASB has released ED 259 Classification of Liabilities (Proposed amendments to AASB 101), which incorporates IASB ED/2015/1 Classification of Liabilities (Proposed amendments to IAS 1).

The proposed amendments clarify that classification of liabilities as either current or non-current is based on the rights that are in existence at the end of the reporting period. In order to make this clear, the IASB proposes:

  1. replacing ‘discretion’ in paragraph 73 of the Standard with ‘right’ to align it with the requirements of paragraph 69(d) of the Standard;
  2. making it explicit in paragraphs 69(d) and 73 of the Standard that only rights in place at the reporting date should affect this classification of a liability; and
  3. deleting ‘unconditional’ from paragraph 69(d) of the Standard so that ‘an unconditional right’ is replaced by ‘a right’.

The IASB also proposes making clear the link between the settlement of the liability and the outflow of resources from the entity and reorganising the guidance in IAS 1 so that similar examples are grouped together. 

Comments on ED 259 are requested to the AASB by 9 May 2015 and submissions are due to the IASB by 10 June 2015.