Debt Covenants and Potential Impact on Debt Classification
Recently, under the debt classification amendments 2020 to IAS 1, the International Accounting Standards Board clarified how an entity classifies debts as current or non-current in specific conditions. And the amendments will come into force for the reporting periods starting on or after Jan 1st, 2023. What are Debt Covenants? Debt covenants are the conditions/restrictions…