IASB proposes amendments to IAS 37
IASB proposes amendments to IAS 37
The International Accounting Standards Board (IASB) has issued Exposure Draft Provisions – Targeted Improvements – Proposed amendments to IAS 37.
The proposed amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets would clarify how companies assess when to record provisions and how to measure them.
The targeted improvements mainly address the following areas:
The Exposure Draft and the Basis for Conclusions may be accessed here.
The proposed amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets would clarify how companies assess when to record provisions and how to measure them.
The targeted improvements mainly address the following areas:
- Recognition criterion of present obligation: The IASB proposes to improve the requirements by amending them to reflect the concepts in the Conceptual Framework for Financial Reporting.
- Measurement of a provision- costs to include: The Exposure Draft proposes narrow-scope amendments to clarify that the types of costs an entity includes in measuring a provision are the same as those it uses to identify whether a contract is onerous.
- Discount rates: The Exposure Draft proposes to require entities to use a risk-free rate to discount provisions.
The Exposure Draft and the Basis for Conclusions may be accessed here.