Non-Current Liabilities with Covenants (Proposed Amendments to IAS 1)


In November 2021 the IASB published its Exposure Draft ED/2021/9 Non-current Liabilities with Covenants (Proposed Amendments to IAS 1).

The IASB’s comment deadline is 21 March 2022.


The Exposure Draft aims to improve the information an entity provides when its right to defer settlement of a liability for at least twelve months is subject to compliance with conditions (e.g. covenants) in addition to addressing concerns about the classification of such a liability as current or non-current.

The proposed amendments would specify that conditions with which an entity must comply within twelve months after the reporting period do not affect classification of a liability as current or non-current. Instead, entities would present separately, and disclose information about, non-current liabilities subject to such conditions.

The Exposure Draft also proposes deferring the effective date of the amendment Classification of Liabilities as Current or Non-Current (Amendments to IAS 1) to at least 1 January 2024.

UK Endorsement Board outreach

Our planned outreach on this project includes discussions with stakeholders and public consultation on our draft comment letter.

If you would like to contribute to outreach work on this project, please email