IASB Launches Consultation to Enhance Provision Reporting Standards
| 13 November 2024
The International Accounting Standards Board (IASB) today released a consultation aimed at refining the standards for recognizing and measuring provisions on company balance sheets. Provisions, defined as liabilities with uncertain timing or amounts, play a critical role in presenting a company’s financial health. The proposed amendments to IAS 37, Provisions, Contingent Liabilities and Contingent Assets, seek to provide clearer guidelines on when companies should record provisions and how to measure them accurately. The changes also mandate enhanced disclosures on the basis for measurement, which would benefit investors looking for more transparency and comparability in companies’ financial positions and future cash flow assessments. This update is particularly relevant for companies with substantial long-term obligations, such as asset decommissioning, or those subject to levies and other government-imposed charges. “Our proposals clarify the accounting requirements for provisions, helping companies provide better information for investors,” stated Andreas Barckow, Chair of the IASB. The IASB invites stakeholders to provide feedback on the proposed amendments, with the consultation period open until March 12, 2025. To find out more details please visit : https://www.ifrs.org/ |