Provisions - Targeted Improvements to IAS 37

In January 2020, the IASB decided to add a standard-setting project to its work plan, with the objective of making three following targeted improvements to IAS 37: 

• aligning the liability definition and requirements for identifying liabilities in IAS 37 with the Conceptual Framework for Financial Reporting;
• clarifying which costs to include in the measure of a provision; and
• specifying whether the rate at which an entity discounts a provision should reflect the entity’s own credit risk.​​

The IASB is expected to issue an exposure draft in H2 2024.