Commission Regulation (EU) 2023/2822 of 19 December 2023 amending Regulation (EU) 2023/1803 as regards International Accounting Standard 1

THE EUROPEAN COMMISSION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Regulation (EC) No 1606/2002 of the European Parliament and of the Council of 19 July 2002 on the application of international accounting standards (1), and in particular Article 3(1) thereof,

Whereas:

(1) By Commission Regulation (EU) 2023/1803 (2) certain international accounting standards and interpretations that were in existence at 8 September 2022 were adopted.

(2) On 23 January 2020, the International Accounting Standards Board (‘IASB’) issued amendments to International Accounting Standard 1 – Presentation of Financial Statements (‘IAS 1’). The amendments specify how a company is to determine, in the statement of financial position, debt and other liabilities with an uncertain settlement date. According to those amendments, that debt or other liabilities are to be classified either as current (due or potentially due to be settled within one year) or non-current.

(3) On 15 July 2020, due to the COVID pandemic, the IASB issued a narrow scope amendment to defer by 1 year the effective date of the amendments to IAS 1 issued on 23 January 2020 by the IASB.

(4) During the implementation of those amendments to IAS 1, some stakeholders asked the IASB to clarify how a company should classify a liability arising from a loan arrangement with covenants as current or non-current. In response, the IASB issued further amendments to IAS 1 on 31 October 2022. Those amendments also improve the information a company should provide when its right to defer settlement of a liability for at least 12 months is subject to covenants.

(5) Following the consultation with the European financial reporting advisory group EFRAG, the Commission concludes that the amendments to IAS 1 meet the criteria for adoption set out in Article 3(2) of Regulation (EC) No 1606/2002.

(6) Regulation (EU) 2023/1803 should therefore be amended accordingly.

(7) The measures provided for in this Regulation are in accordance with the opinion of the Accounting Regulatory Committee,

HAS ADOPTED THIS REGULATION:

Article 1

In the Annex to Regulation (EU) 2023/1803, International Accounting Standard 1 – Presentation of Financial Statements is amended as set out in the Annex to this Regulation.

Article 2

Each company shall apply the amendments referred to in Article 1, at the latest, as from the commencement date of its first financial year starting on or after 1 January 2024.

Article 3

This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 19 December 2023.

For the Commission The President Ursula VON DER LEYEN

(1) OJ L 243, 11.9.2002, p. 1.

(2) Commission Regulation (EU) 2023/1803 of 13 September 2023 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council (OJ L 237, 26.9.2023, p. 1).