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08/05/2020 - EFRAG's Draft Comment Letter on the IASB's ED/2020/3 Classification of Liabilities - Deferral of Effective Date - Proposed amendments to IAS 1

​EFRAG has published its Draft Comment Letter in response to the IASB's Exposure Draft Classification of Liabilities - Deferral of Effective Date​ - Proposed amendments to IAS 1 and seeks constituents' views on the proposals. Comments on the Draft Comment Letter are requested by 25 May 2020.


The IASB issued the Exposure Draft ED/2020/3 Classification of Liabilities - Deferral of Effective Date - Proposed amendments to IAS 1 (the 'ED') on 4 May 2020, with comments due by 3 June 2020 which proposes to amend IAS 1 Presentation of Financial Statements​. 

Due to the covid-19 pandemic, the IASB proposed to defer the effective date by one year, until 1 January 2023, to provide companies with more time to implement any classification changes resulting from the proposals.

In its Draft Comment Letter, EFRAG supports the proposed amendment as EFRAG acknowledges that, there may be related operational consequences of the amendments. EFRAG considers that the advantages of a deferral during a time of significant disruption such as the current circumstances would outweigh the disadvantages, as earlier application of the amendments will continue to be permitted. ​

The draft comment letter is available he​re​.