EY has submitted a comment letter to the IASB to offer its views on ED/2021/9 – Non-current Liabilities with Covenants.
The ED clarifies that a liability may be non-current even if it is subject to covenants to be complied with after the reporting period and the entity would not have complied with those covenants at the end of the reporting period. It proposes additional disclosures for, and separate presentation of non-current liabilities that are subject to covenants to be complied with within twelve months after the reporting period.
For more information on the ED refer to the EY IFRS Developments on the topic here.
