CERTYNEX IFRS ACADEMY

A liability subject to covenants to be complied with within 12 months is classified as non-current. What is the objective of the information the entity then provides in the notes?

To demonstrate that the non-current classification complies with all the covenants of the loan contract.

To enable users to assess the risk that the liability becomes repayable within 12 months.

To inform users of the interest rate and repayment schedule of the loan.

To justify the current classification of another loan of the entity that has been breached.