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. | Lecture IFRS primer international GAAP basics Chapter 5 - Wiecek Young 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 2 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 3 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 4 IAS 37 Overview Objective and scope Recognition Measurement Reimbursements Changes in and use of provisions Application of the recognition and measurement rules Disclosures 5 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 6 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
