EFRAG Submits Comment Letter on IASB’s Exposure Draft for Provisions

The European Financial Reporting Advisory Group (EFRAG) has submitted its Comment Letter on the IASB’s Exposure Draft IASB/ED/2024/8, which proposes targeted amendments to IAS 37 Provisions, Contingent Liabilities, and Contingent Assets.

The proposed changes focus on:
Recognition criteria – Clarifying the “present obligation” requirement for provisions
Measurement – Defining allowable costs and specifying a risk-free discount rate

While EFRAG acknowledges improvements, it raises concerns about increased reliance on judgment and the lack of clarity for some provisions. It also welcomes the withdrawal of IFRIC 21 but notes that key concerns remain unaddressed.

EFRAG recommends that the IASB prioritise finalising measurement amendments before addressing recognition criteria.

To find out more details please visit : https://www.efrag.org/