Topic 07 · IAS 37
Provisions & contingencies
When an uncertain obligation goes on the balance sheet, at what amount and discount rate, and which contingencies stay in the notes; the thresholds and expense-only provisions differ by framework.
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Sign in with GoogleStandard-setter changes on this topic
- 2024-11-12IFRSThe IASB proposed clarifying when a present obligation exists (with IFRIC 21 Levies to be withdrawn), specifying that the discount rate is a risk-free rate excluding the entity's own credit risk, and clarifying which costs enter the measurement of a provision. Exposure draft as of this file's cut-off; check ifrs.org for whether final amendments and an effective date have been issued.
- 2024-03-27FRS 102The Periodic Review rewrote Sections 20 (leases) and 23 (revenue) but left Section 21 Provisions and Contingencies substantively as it was; the only knock-on effect is that onerous operating leases now on the balance sheet are dealt with by impairment of the right-of-use asset rather than a Section 21 provision. Effective for periods beginning on or after 1 January 2026. Effective 2026-01-01.
- 2020-05-14IFRSAdded IAS 37.68A: the cost of fulfilling a contract comprises the costs that relate directly to it, both incremental costs and an allocation of other directly related costs such as depreciation of equipment used, ending the incremental-cost-only reading. Effective for periods beginning on or after 1 January 2022, applied to contracts not yet fully performed at the start of that period without restating comparatives; the KGK adopted the same change in TMS 37. Effective 2022-01-01.