Document ID: chunk:federal_register_of_legislation:F2023L00951:body:0:p2
Version: federal_register_of_legislation:F2023L00951
Segment Type: other
Provision Reference: 
Character Range: 3055–6379

the financial statements to understand the risk that non-current liabilities with covenants could become repayable within twelve months.

Application date
This Standard applies to annual periods beginning on or after 1 January 2024, with earlier application permitted.

Accounting Standard AASB 2023-3
The Australian Accounting Standards Board makes Accounting Standard AASB 2023-3 Amendments to Australian Accounting Standards – Disclosure of Non-current Liabilities with Covenants: Tier 2 under section 334 of the Corporations Act 2001.
Keith Kendall
Dated 22 June 2023 Chair – AASB

Accounting Standard AASB 2023-3
Amendments to Australian Accounting Standards – Disclosure of Non-current Liabilities with Covenants: Tier 2

Objective
     1                        This Standard amends AASB 1060 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities (March 2020) to:
          (a)                    clarify that a liability is classified as non-current if an entity has the right at the reporting date to defer settlement of the liability for at least twelve months after the reporting date;
          (b)                   clarify the reference to settlement of a liability by the issue of equity instruments in classifying liabilities; and
          (c)                    require the disclosure of information that enables users of the financial statements to understand the risk that non-current liabilities with covenants could become repayable within twelve months.
     These amendments reflect the issuance of AASB 2020-1 Amendments to Australian Accounting Standards – Classification of Liabilities as Current or Non-Current (March 2020) and AASB 2022-6 Amendments to Australian Accounting Standards – Non-current Liabilities with Covenants (December 2022).

Application
     2                        The amendments set out in this Standard apply to entities and financial statements in accordance with the application of AASB 1060 set out in AASB 1057 Application of Australian Accounting Standards.
     3                        This Standard applies to annual periods beginning on or after 1 January 2024. This Standard may be applied to annual periods beginning before 1 January 2024.
     4                        This Standard uses underlining, striking out and other typographical material to identify the amendments to AASB 1060, in order to make the amendments more understandable. However, the amendments made by this Standard do not include that underlining, striking out or other typographical material. Amended paragraphs are shown with deleted text struck through and new text underlined.

Amendments to AASB 1060
     5                        Paragraph 40 is amended. Paragraphs 41A and 47A are added. Deleted text is struck through and new text is underlined. Paragraph 41 is not amended but is included for reference.

          Statement of Financial Position3
     …

          Current liabilities
          40 An entity shall classify a liability as current when:
               (a) it expects to settle the liability in the entity's normal operating cycle;
               (b) it holds the liability primarily for the purpose of trading;
               (c) the liability is due to be settled within twelve months after the reporting