Non-current Liabilities with Covenants

Law - debt documentation - loan documentation - bond documentation - covenants - financial reporting - international financial reporting standards (IFRS) - IAS 1.

"Non-current Liabilities with Covenants" is an amendment to IAS, Presentation of Financial Statements.

It is mandatory for reporting periods beginning on or after 1 January 2024.

The amendments increased the information a reporting entity must provide when its right to defer settlement of a liability for at least twelve months is subject to compliance with covenants.

The amendments also responded to stakeholders’ concerns about the classification of such liabilities as current or non-current.

A greater number of related liabilities are now classified as current liabilities.

See also

• Acceleration
• Accounting exposure
• Asset cover
• Bond
• Breach of covenant
• Compliance
• Contingent covenant
• Contract
• Covenant
• Covenant trigger
• Credit risk
• Current liabilities
• Default
• Documentation
• Event of default
• Financial covenant
• Financial reporting
• Grace period
• Headroom
• Incurrence covenant
• Interest cover
• IAS 1
• Loan
• Loan agreement
• Maintenance covenant
• Net worth
• Non-current liabilities
• Non-financial covenant
• Restrictive covenant
• Term
• Trigger event
• Waiver
• Warranty

Other resources

• Seeds of Change: Loan financing in 2024 - Slaughter and May
• Deloitte UK Accounting Plus - Non-current liabilities with Covenants (Amendments to IAS 1)
• IFRS webpage - Non-current liabilities with Covenants (Amendments to IAS 1)
• Treasury Essentials: Covenants, The Treasurer, March 2013