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Bridge over ocean
10 July 2015 Comment Letter

CFA Institute Comment Letter on Classification of Liabilities

  1. Vincent Papa, PhD, CPA, CFA
  2. Sandra J. Peters, CPA, CFA
  3. Ashwinpaul C. Sondhi, PhD

This comment letter, in response to the Exposure Draft, Classification of Liabilities: Proposed Amendments to IAS 1, proposes the need for further development of robust conceptual principles for the classification of financial liabilities to alleviat

This comment letter, in response to the Exposure Draft, Classification of Liabilities: Proposed Amendments to IAS 1, proposes the need for further development of robust conceptual principles for the classification of financial liabilities to alleviate the varied interpretation of reporting requirements and potential misclassification of current vs. non-current liabilities. The letter also recommends enhanced disclosures on covenants and sources of liquidity to help investors assess refinancing and liquidity risk.

View Comment Letter