IAS 37 Provisions, Contingent Liabilities and Contingent Assets sets the recognition criteria and measurement bases to be applied to provisions, contingent liabilities and contingent assets.
Published September 1998. Effective 1 July 1999.
*UK qualifying parents and subsidiaries can take advantage of FRS 101 Reduced Disclosure Framework. Find out more on which entities qualify and the criteria to be met.
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IAS 37 requires that a provision is only recognised where:
The amount of the provision should be the best estimate of the amount required to settle the obligation at the reporting date.
Contingent liabilities are not recognised, but are disclosed unless the possibility of an outflow of economic resources is remote.
Contingent assets are not recognised, but are disclosed where an inflow of economic benefits is probable.
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*Not EU endorsed as at 20 December 2017. Read more on EU Endorsement.
ED/2017/6 Definition of Material: Proposed amendments to IAS 1 and IAS 8 was issued in September 2017. It is proposed that IAS 37 is amended to reflect the new definition of material.
UK qualifying parents and subsidiaries can take advantage of FRS 101 Reduced Disclosure Framework. Find out more on which entities qualify and the criteria to be met.
IAS 37 allows the non-disclosure of information about provisions and contingent liabilities where disclosure is expected to prejudice the position of an entity in a dispute. In these cases IAS 37 requires that the general nature of the dispute is disclosed. From 1 January 2016, UK companies applying FRS 101 are required to provide additional specific numeric and narrative disclosures.
There are no disclosure exemptions from IAS 37.
This page was last updated 20 December 2017