CERTYNEX IFRS ACADEMY

At 31 December 2026, Boreas SA must repay a loan of EUR 4,000,000 in 2029. The contract requires Boreas to comply, at each 31 December, with a ratio of net debt to earnings before interest, tax, depreciation and amortisation (EBITDA) of at most 3.0. At 31 December 2026, the ratio is 3.4 (case facts). The lender will test the ratio only on 30 June 2027, using the 2026 accounts. How is the loan classified at 31 December 2026?

As a non-current liability, since the lender will test the ratio in June 2027, after the closing date, using the 2026 accounts.

As a non-current liability, as long as management expects to obtain a waiver from the lender before its test.

As a current liability, since the ratio is not met at the closing date, when the right to defer must exist.

As a non-current liability, as long as the contractual maturity of the loan is set in 2029.