Breach before the reporting date and waiver obtained afterwards

Learning objectives

• Analyse the effect of a breach before the end of the reporting period followed by a waiver obtained after that date.L3
• Record the reclassification as a current liability.L3

Normative references

• IAS 1 §74When a breach of a provision of a long-term loan arrangement on or before the end of the reporting period makes the liability payable on demand, it is classified as current; an agreement by the lender to provide a waiver obtained after the reporting period does not change that classification.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

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