Provisions – Targeted Improvements

Timeline

On 12 November 2024 the International Accounting Standards Board (IASB) published the Exposure Draft IASB/ED/2024/8 Provisions - Targeted Improvements proposing amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets.

Background

The targeted improvements to IAS 37 aim to clarify:

1. when an entity recognises a provision - including whether and, if so, when an obligation conditional on an entity’s own future actions is a ‘present obligation’ and hence a liability;
2. whether the rate at which an entity discounts a provision for the time value of money should reflect the entity’s own credit risk, that is, the possibility that it may fail to fulfil its obligation; and
3. whether a provision for an obligation to deliver goods or services should comprise only the incremental costs of fulfilling the obligation or also include an allocation of other directly related costs.

UKEB Outreach

The UKEB outreach plan includes discussions with stakeholders and public consultation on the UKEB’s Draft Comment Letter (DCL).  

If you would like to contribute to our outreach work on this project, please email ukendorsementboard@endorsement-board.uk. Please include ‘Provisions – Targeted Improvements’ in the email subject line. Alternatively, you can complete our Invitation to Comment (see below).

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UKEB Draft Comment Letter

The UKEB published its Draft Comment Letter on 20 December 2024 for public consultation.

If you would like to comment, please complete the ‘Your Details’ form and provide feedback using the ‘Invitation to Comment’ template. Responses providing views on individual questions as well as comprehensive responses to all questions are welcome. Please respond by close of business 10 February 2025 to ukendorsementboard@endorsement-board.uk.

The relevant documents are available at the end of this page:

• Draft Comment Letter
• Invitation to Comment and Your Details forms

UKEB Meetings

Meetings related to the project are as follows:

• May 2023 IASB General Update: Appendix 6A
• June 2023 Provisions – Targeted Improvements
• May 2024 IASB General Update: Appendix E
• June 2024 IASB General Update: Appendix A
• July 2024 IASB General Update: Appendix A
• October 2024 Project Initiation Plan (Agenda paper 6)
• November 2024 Initial Board technical discussion (Agenda paper 6)
• December 2024 Provisions – Initial technical analysis and Draft Comment Letter (Agenda paper 6)