Topic list Syllabus reference

A non-current financial liability due to be settled within 12 months of the end of the reporting period should be classified as a current liability, even if an agreement to refinance, or to reschedule payments, on a long-term basis is completed after the end of the reporting period and before the financial statements are authorised for issue. (IAS 1: para. 72)

End of the reporting	Agreement to	Date financial	Settlement date <12
period	refinance on long­	statements	months after end of
	term basis	authorised for issue	the reporting period therefore current

liability

A non-current financial liability that is payable on demand because the entity breached a condition of its loan agreement should be classified as current at the end of the reporting period even if the lender has agreed after the end of the reporting period, and before the financial statements are authorised for issue, not to demand payment as a consequence of the breach.

Condition of loan	End of the reporting	Lender agrees not to	Date financial
agreement breached. Non-current liability becomes payable on demand	period	enforce payment resulting from breach	statements are authorised for issue. Loan shown as current liability

However, if the lender has agreed by the end of the reporting period to provide a period of grace ending at least 12 months after the end of the reporting period within which the entity can rectify the breach and during that time the lender cannot demand immediate repayment, the liability is classified as non-current.

4. 
   Statement of profit or loss and other comprehensive income
   
   1. 
      Format
      

IAS 1 allows income and expense items to be presented either:

1. 
   In a single statement of profit or loss and other comprehensive income; or
   
2. 
   In two statements: a separate statement of profit or loss and statement of other comprehensive
   

income. (IAS 1: para. 81)