contractual maturity

Assets and liabilities are put into residual contractual maturity buckets such as 'on demand', 'less than 1 month', '2-3 months' etc.

Liabilities should be classified as current or non-current according to their strict contractual maturity, except where the same lender is firmly committed to refinance the debt on the same terms.

These residual contractual maturities may be adjusted to account for expected counter party behaviour such as early loan repayments due to borrowers refinancing and expected renewals of term deposits to give forecast cash flows.

Here the discussion paper proposed a very strict rule: the assessment was to be made by reference to the contractual maturity of the debt, and no consideration was to be given to facilities which would permit it to be re-financed.