The following amendments to Singapore Financial Reporting Standards (International) (SFRS(I)) apply to annual periods beginning on or after 1 January 2024.
Classification of Liabilities as Current or Non-current (SFRS(I) 1-1)
Clarifies that classification depends on the right to defer settlement at the reporting date, including how loan covenants affect this. Additional disclosures apply to non-current liabilities subject to covenants.
Lease Liability in a Sale and Leaseback (SFRS(I) 16)
Specifies how a seller-lessee measures the lease liability, so that no gain or loss is recognised on the right of use retained.
Supplier Finance Arrangements (SFRS(I) 1-7 and SFRS(I) 7)
Issued separately in 2023 and also effective 1 January 2024. Requires disclosures on supplier finance arrangements, including their terms and their effect on liabilities, cash flows and liquidity risk.
Action Points
- Review loan covenants and the classification of borrowings
- Identify any supplier finance or reverse factoring arrangements
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