Chapter 5 - Provisions, contingent liabilities and contingent assets: IAS 37. The following will be discussed in this chapter: Related standards, IAS 37, current GAAP comparisons, looking ahead, end-of-chapter practice. | Provisions, Contingent Liabilities and Contingent Assets: IAS 37 Wiecek and Young IFRS Primer Chapter 5 Provisions, Contingent Liabilities and Contingent Assets Related standards IAS 37 Current GAAP comparisons Looking ahead End-of-chapter practice Related Standards FAS 5 Accounting for Contingencies FAS 143 Accounting for Asset Retirement Obligations FAS 146 Accounting for Costs Associated with Exit or Disposal Activities CON 5 Recognition and Measurement in Financial Statements of Business Enterprises CON 6 Elements of Financial Statements CON 7 Using Cash Flow Information and Present Value in Accounting Measurements Related Standards Framework for the Preparation and Presentation of Financial Statements IFRS 4 Insurance Contracts IAS 1 Presentation of Financial Statements IAS 11 Construction Contracts IAS 12 Income Taxes IAS 17 Leases IAS 19 Employee Benefits IAS 37 – Overview Objective and scope Recognition Measurement Reimbursements Changes in and use of provisions Application of the recognition and measurement rules Disclosures IAS 37 – Objective and Scope Standard seeks to ensure that provisions and contingencies are appropriately dealt with in terms of recognition, measurement, and disclosure It does not cover: Executory contracts unless they are onerous Provisions or contingencies that are covered by other standards Depreciation and impairments The key thing that separates a provision from other liabilities is the uncertainty associated with it, including: • Uncertainty of the timing of a future expenditure, and/or • Uncertainty of measurement IAS 37 – Objective and Scope The standard defines provisions, contingent liabilities, and contingent assets as follows: A provision is a liability of uncertain timing or amount A contingent liability is (a) A possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within . | Provisions, Contingent Liabilities and Contingent Assets: IAS 37 Wiecek and Young IFRS Primer Chapter 5 Provisions, Contingent Liabilities and Contingent Assets Related standards IAS 37 Current GAAP comparisons Looking ahead End-of-chapter practice Related Standards FAS 5 Accounting for Contingencies FAS 143 Accounting for Asset Retirement Obligations FAS 146 Accounting for Costs Associated with Exit or Disposal Activities CON 5 Recognition and Measurement in Financial Statements of Business Enterprises CON 6 Elements of Financial Statements CON 7 Using Cash Flow Information and Present Value in Accounting Measurements Related Standards Framework for the Preparation and Presentation of Financial Statements IFRS 4 Insurance Contracts IAS 1 Presentation of Financial Statements IAS 11 Construction Contracts IAS 12 Income Taxes IAS 17 Leases IAS 19 Employee Benefits IAS 37 – Overview Objective and scope Recognition Measurement Reimbursements Changes in and use of .
