Comprehensive Report on IFRS Foundation Amendments and Analysis

This report is a response to the IFRS Foundation's consultation on proposed amendments to IAS 1, specifically addressing the classification of liabilities. The report agrees with the proposed changes regarding the use of the term 'right' instead of 'discretion', the clarification that only rights at the reporting date affect classification, and the removal of 'unconditional' from the standard. The report also supports linking settlement with the outflow of resources and the retrospective application of the changes. It provides a concise overview of the key issues and the responses provided, indicating a general agreement with the proposed amendments to enhance clarity and consistency in financial reporting. The report also emphasizes the importance of the outflow of resources and the need for a consistent application of the changes to allow for comparable financial statements.

IFRS Foundation
30 Cannon Street
London EC4M 6XH
United Kingdom
22nd May, 2015
To whom it may concern,
The Institute of Certified Public Accountants in Ireland welcomes the opportunity to comment on:
“Proposed Amendments to IAS 1 ED/2015/1”
Question 1
Classification based on the entity’s rights at the end of the reporting period
Do you agree with the following proposed amendments?
(a) Replacing ‘discretion’ in paragraph 73 of the Standard with ‘right’ to align it with the requirements of
paragraph 69(d) of the Standard;
Yes we agree with this clarification.
(b) Making it explicit in paragraphs 69(d) and 73 of the Standard that only rights in place at the reporting
date should affect this classification of a liability;
Yes we agree with this clarification
(c) Deleting ‘unconditional’ from paragraph 69(d) of the Standard so that ‘an unconditional right’ is replaced
by ‘a right’.
Yes we agree with this clarification
Question 2
Linking settlement with the outflow of resources
Yes we agree that it is important that link to outflow of resources is stipulated.
Question 3
Transition arrangements
Yes we agree with the proposal to apply the changes retrospectively to maintain consistency with other Accounting
Standards and allow comparatives to be presented on the same basis.
If you have any questions on the above please do not hesitate to contact me.
Yours sincerely,
David Roxburgh
Chairperson, Financial Reporting Sub - Committee