Preface

Standards amended by AASB 2022-6

This Standard makes amendments to AASB 101 Presentation of Financial Statements (July 2015) and AASB Practice Statement 2 Making Materiality Judgements (December 2017).

These amendments arise from the issuance of International Financial Reporting Standard Non-current Liabilities with Covenants (Amendments to IAS 1) by the International Accounting Standards Board (IASB) in October 2022.

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.