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Provisions - Targeted Improvements to IAS 37

Description

This project is a result from the IASB research project held from 2015 to 2019, were the IASB researched for IAS 37 Provisions, Contingent Liabilities and Contingent Assets application issues.

In January 2020, the IASB decided to add a standard-setting project to its work plan, with the objective of making three following targeted improvements to IAS 37: 

  • aligning the liability definition and requirements for identifying liabilities in IAS 37 with the Conceptual Framework for Financial Reporting;
  • clarifying which costs to include in the measure of a provision; and
  • specifying whether the rate at which an entity discounts a provision should reflect the entity’s own credit risk.​​


In February 2022, the IASB decided to keep the project based on their assessment that efficient progress is possible.

In Q4/2022 and 2023, the IASB discussed whether to require or prohibit adjusting the provision-related discount rates for performance risk.
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