Accounting Standard AASB 2022-6 Amendments to Australian Accounting Standards – Non-current Liabilities with Covenants
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Main features of this Standard
Main requirements
This Standard amends AASB 101 to improve the information an entity provides in its financial statements about liabilities arising from loan arrangements for which the entity’s right to defer settlement of those liabilities for at least twelve months after the reporting period is subject to the entity complying with conditions specified in the loan arrangement.
The Standard also amends an example in Practice Statement 2 regarding assessing whether information about covenants is material for disclosure.
Application date
This Standard applies to annual periods beginning on or after 1 January 2023. Earlier application is permitted, provided AASB 2020-1 Amendments to Australian Accounting Standards – Classification of Liabilities as Current or Non-current is also applied at the same time.