In June 2005 the International Accounting Standards Board (Board) published for public comment an exposure draft of Proposed Amendments to IAS 37 Provisions Contingent Liabilities and Contingent Assets and IAS 19 Employee Benefits.

The amendments to IAS 37 would require entities to recognise in their financial statements obligations that satisfy the definition of a liability in the Board's Framework, unless they cannot be measured reliably. Uncertainty about the amount or timing of the economic benefits that will be required to settle a liability would be reflected in the measurement of that liability instead of affecting whether it is recognised.

This change would enhance financial reporting because some liabilities previously only disclosed in the notes to the financial statements will now be included in the balance sheet. These proposed amendments to IAS 37 complement the Exposure Draft of Proposed Amendments to IFRS 3 Business Combinations, which the Board has also published today, and would result in items previously described as 'contingent liabilities' being treated more consistently in and outside a business combination.

The exposure draft comment period ended on 28 October 2005.

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