IFRB 2024/02 Amendments to IAS 1 - Clarification of the Meaning of Settlement in the Classification of Liabilities

After the Classification as current/ non-current Classified as current or non-current on Amendments affected by the settlement terms of the basis of the terms of exercise of the conversion option, which is the derivative. [...] Exercise of the conversion does not affect the option is considered to be Exercise of the conversion classification of the settlement of the host option is considered to be liability. [...] As the conversion option is due for 5 years, Entity A an American-style option, As the conversion option is has the right to defer convertible any time prior an American-style option, settlement for at least to maturity, the entity convertible any time prior twelve months after the does not have the right to to maturity, the entity reporting period (IAS defer settlement of the does not have the ri. [...] Exercise of the conversion does not affect the option is considered to be Exercise of the conversion classification of the settlement of the host option is considered to be liability. [...] In case of European style options, if the host liability is due for repayment after twelve months from the end of the reporting period and the conversion option also has an exercise date after twelve months from the end of the reporting period, considering the exercise of the option as settlement of the liability will still result in the classification of the liability as non-current.