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Videos 🎦
1 - Convertible Notes Classification
If your financial year ends on 30 June, these changes could impact the current vs non-current classification of your convertible notes this reporting season.
In this short video, we break down:
- ✅ The impact of the equity settlement features on classification
- ✅ What happens when conversion involves a variable number of shares
- ✅ Why some five-year notes might now be current liabilities
- ✅ Key features that often trigger a liability classification
🔍 Don’t risk misclassification — especially with instruments like foreign-denominated notes or those where conversion depends on a variable share price.
🧾 Make sure your 30 June 2025 financials are compliant and complete.
2 - Loan Covenant Changes Under AASB 101
Big changes are coming for loan classifications under AASB 101 — and they take effect for entities with a 30 June 2025 year end.
These amendments shift how loan covenants affect whether liabilities are current or non-current, and introduce new disclosure requirements.
Here’s what you need to know:
✅ If you must comply with a covenant on or before the reporting date:
Compliant? Classify as non-current.
Non-compliant? It’s current, even if the bank tests later.
✅ If compliance is after the reporting date (a “future condition”):
The classification stays non-current,
But detailed disclosures are required, including the risk of breach and potential going concern issues.
These changes go beyond classification — they affect your disclosures, risk assessment, and potentially going concern.
🧾 Make sure your 30 June 2025 financials are compliant and complete.