IASB’s ED IAS 37 provisions on targeted improvements – proposed amendments

Accountancy Europe welcomes the International Accounting Standards Board’s (IASB) efforts to align “IAS 37: provisions” with the conceptual framework and to better structure the provisions recognition criteria, which ought to support the consistent application of IAS 37.

We are nevertheless concerned that the amendments, which represent a significant change to the current requirements, will result in more complex recognition criteria and bring in higher judgement and uncertainty levels. Therefore, we recommend the IASB to:

• thoroughly evaluate the feedback received from this consultation
• improve the structure and the overall clarity of the new recognition requirements
• ensure that sufficient guidance exists in relation to these new requirements
• field-test the new recognition criteria to ensure they can be operationalised