The International Accounting Standards Board (IASB) recently issued its Exposure Draft, “Provisions – Targeted Improvements,” and we want to hear your feedback!
This Exposure Draft proposes amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets aimed at enhancing the relevance and usefulness of financial information, including improving the comparability of the financial statements.
Specifically, the proposals in the IASB’s Exposure Draft:
- clarify the present obligation recognition criterion;
- provide specific guidance for threshold-triggered costs;
- specify that entities should use a discount rate reflecting the time value of money—represented by a risk-free rate—without adjustments for non-performance risk;
- require entities to use the same costs in estimating the future expenditure to settle an obligation as required in determining whether a contract is onerous; and
- provide additional examples and updates to the Guidance on implementing IAS 37, including an expanded decision tree.
Why should you attend?
- Learn more about the proposals and their potential impact on financial reporting.
- Take advantage of this opportunity to share your views directly with representatives of the AcSB in an open forum discussion.
- Provide feedback to help inform the AcSB’s response to the IASB, ensuring Canadian perspectives on this topic are heard.
Can’t attend?
If you are unable to attend the roundtable or would prefer to speak to us in French, please contact us so we can consider alternative ways to obtain your input.
Comments are due to the IASB on March 12, 2025.
How to prepare
- Read the IASB’s Exposure Draft for full details on the proposals.
- Discussion topics and questions for this event will be shared with registrants prior to the event date.
Note: By registering for the outreach event, you agree to be contacted about news, events, and/or other opportunities associated with the project.
AcSB exposure draft
Stay tuned for the release of the AcSB exposure draft, “Provisions – Targeted Improvements.” This exposure draft reflects the proposals made by the IASB that the AcSB intends to adopt as Canadian generally accepted accounting principles, subject to deliberating comments received. We encourage interested and affected parties to send their feedback directly to the AcSB on the applicability of these proposals in Canada.