Proposed improvements to IAS 37
Proposed improvements to IAS 37
The International Accounting Standards Board (IASB) is proposing certain targeted improvements to IAS 37 Provisions, Contingent Liabilities and Contingent Assets (IAS 37) and the withdraw related interpretations, including IFRIC 21 Levies.
The IASB’s targeted improvements to IAS 37 would help companies apply the requirements around provisions more consistently and provide investors with more useful information.
The targeted improvements primarily include:
Comments are due into the XRB by 3 February 20205 and the IASB by 12 March 2025.
For more on the above, please contact your local BDO representative.
The IASB’s targeted improvements to IAS 37 would help companies apply the requirements around provisions more consistently and provide investors with more useful information.
The targeted improvements primarily include:
- Updates to the definition of a liability;
- Clarifications and disentanglement of supporting requirements, including ‘present obligation’ and ‘past event’ recognition criterion;
- Explanations around when an entity should recognise provisions for obligations it could avoid through it's future actions;
- New requirements for recognising provisions around threshold-triggered costs;
- Clarification around whether discount rates reflect non-performance risk; and
- Guidance on which costs to include in the measurement of a provision.
Comments are due into the XRB by 3 February 20205 and the IASB by 12 March 2025.
For more on the above, please contact your local BDO representative.