22 November 2021To:
Members of the Hong Kong Institute of CPAsAll other interested partiesINVITATION TO COMMENT ON IASB EXPOSURE DRAFTED/2021/9 Non-current Liabilities with Covenants(Proposed amendments to IAS 1)
Comments to be received by 11 February 2022The Financial Reporting Standards Committee (FRSC) of the Hong Kong Institute ofCertified Public Accountants (Institute) is seeking comments on the IASB ED/2021/9 Non-current Liabilities with Covenants (Proposed amendments to IAS 1). The Exposure Draft(ED) is available on the Institute's website:
http://www.hkicpa.org.hk/en/standards-and-regulations/standards/financial-reporting/exposure-drafts/The International Accounting Standards Board (IASB) has proposed amendments to IAS 1Presentation of Financial Statements to improve the information companies provide aboutlong-term liabilities with covenants.IAS 1 requires a company to classify a liability as non-current only if the company has aright to defer settlement of the liability for at least 12 months after the reporting date.However, such a right is often subject to the company complying with covenants after thereporting date.The proposed amendments would specify that conditions with which a company mustcomply within twelve months after the reporting period do not affect classification of aliability as current or non-current at the reporting date. Instead, companies would presentseparately, and disclose information about, non-current liabilities subject to such conditions.The proposals also address feedback from stakeholders about the classification of liabilityas current or non-current when applying requirements introduced in 2020 that are not yetin effect. Consequently, the IASB is also proposing to defer the effective date of thoserequirements to align with the proposed amendment.The FRSC invites your comments on the proposal as set out in the ED by 11 February2022 to allow your comments to be considered in developing its response to the IASB.Comments should be supported by specific reasoning and should be submitted in writtenform.Comments may be sent by mail, fax or e-mail to:
Standard Setting DepartmentHong Kong Institute of Certified Public Accountants37th Floor, Wu Chung House213 Queen’s Road EastWanchai, Hong KongFax number (+852) 2865 6776E-mail: commentletters@hkicpa.org.hkComments will be acknowledged and may be made available for public review unlessotherwise requested by the respondent.
Invitation to Comment on IASB Exposure Draft ED/2021/9 Non-current Liabilities with Covenants (Proposed amendments to IAS 1)
下载原件22 November 2021To:
Members of the Hong Kong Institute of CPAsAll other interested partiesINVITATION TO COMMENT ON IASB EXPOSURE DRAFTED/2021/9 Non-current Liabilities with Covenants(Proposed amendments to IAS 1)
Comments to be received by 11 February 2022The Financial Reporting Standards Committee (FRSC) of the Hong Kong Institute ofCertified Public Accountants (Institute) is seeking comments on the IASB ED/2021/9 Non-current Liabilities with Covenants (Proposed amendments to IAS 1). The Exposure Draft(ED) is available on the Institute's website:
http://www.hkicpa.org.hk/en/standards-and-regulations/standards/financial-reporting/exposure-drafts/The International Accounting Standards Board (IASB) has proposed amendments to IAS 1Presentation of Financial Statements to improve the information companies provide aboutlong-term liabilities with covenants.IAS 1 requires a company to classify a liability as non-current only if the company has aright to defer settlement of the liability for at least 12 months after the reporting date.However, such a right is often subject to the company complying with covenants after thereporting date.The proposed amendments would specify that conditions with which a company mustcomply within twelve months after the reporting period do not affect classification of aliability as current or non-current at the reporting date. Instead, companies would presentseparately, and disclose information about, non-current liabilities subject to such conditions.The proposals also address feedback from stakeholders about the classification of liabilityas current or non-current when applying requirements introduced in 2020 that are not yetin effect. Consequently, the IASB is also proposing to defer the effective date of thoserequirements to align with the proposed amendment.The FRSC invites your comments on the proposal as set out in the ED by 11 February2022 to allow your comments to be considered in developing its response to the IASB.Comments should be supported by specific reasoning and should be submitted in writtenform.Comments may be sent by mail, fax or e-mail to:
Standard Setting DepartmentHong Kong Institute of Certified Public Accountants37th Floor, Wu Chung House213 Queen’s Road EastWanchai, Hong KongFax number (+852) 2865 6776E-mail: commentletters@hkicpa.org.hkComments will be acknowledged and may be made available for public review unlessotherwise requested by the respondent.