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.
The IASB comment period closes on 12 March 2025.
Background
The targeted improvements to IAS 37 aim to clarify:
- 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;
- 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
- 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.
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UKEB Meetings
Meetings related to the project are as follows: