Effect of events after the reporting period (paragraphs 69–76)
BC39 Paragraph 63 of IAS 1 (as issued in 1997) included the following:
An enterprise should continue to classify its long‑term interest‑bearing liabilities as non‑current, even when they are due to be settled within twelve months of the balance sheet date if:
(a) the original term was for a period of more than twelve months;
(b) the enterprise intends to refinance the obligation on a long‑term basis; and
(c) that intention is supported by an agreement to refinance, or to reschedule payments, which is completed before the financial statements are authorised for issue.
BC40 Paragraph 65 stated:
Some borrowing agreements incorporate undertakings by the borrower (covenants) which have the effect that the liability becomes payable on demand if certain conditions related to the borrower’s financial position are breached. In these circumstances, the liability is classified as non‑current only when:
(a) the lender has
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