Key examples of current liabilities include accounts payable, which are generally due within 30 to 60 days, though in some cases payments may be delayed.
[1] The proper classification of liabilities is essential for providing accurate financial information to investors and stakeholders.
Beginning in January 1, 2024, the International Accounting Standards Board amended IAS 1 with regards to the classification of certain liabilities as current or noncurrent in the presentation in financial statements.
Previously, the IAS 1 required that, for a liability to be classified as current, it must not have an "unconditional right" to be deferred for at least 12 months after the reporting date.
The board removed this requirement, instead, the right to postpone the settlement must have substance and should exist at the reporting date.