Provisions—Targeted Improvements

The IASB met on 23 September 2026 to continue redeliberating the proposals in the Exposure Draft Provisions—Targeted Improvements, which proposed amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets.

Recognition—Consequences of omitting paragraph 14Q (Agenda Paper 22A)

At its May 2026 meeting, the IASB tentatively decided to omit from IAS 37 a requirement proposed in paragraph 14Q of the Exposure Draft. At this meeting, it discussed the consequences of omitting that requirement. The primary consequence is a need to consider whether to omit or move a supporting requirement proposed in paragraph 14R of the Exposure Draft.

The IASB tentatively decided to relocate that supporting requirement from the requirements supporting the past-event condition for recognising a provision to those supporting the obligation condition. 

All 12 IASB members agreed with this decision.

Recognition—Other aspects of the past-event condition (Agenda Paper 22B)

The IASB discussed other aspects of the proposals relating to the past-event condition for recognising a provision.

The IASB tentatively decided: 

1. to make no changes to the requirements proposed for threshold-triggered costs; and
2. to retain in IAS 37 the statement that no provision is recognised for costs that need to be incurred to operate in the future.  

All 12 IASB members agreed with these decisions.

Other matters (Agenda Paper 22C)

The IASB discussed other aspects relating to executory contracts, which are excluded from the scope of IAS 37 unless they are onerous. 

The IASB tentatively decided to retain the proposal to update the wording of the definition of an executory contract in IAS 37 to align it with the wording in the Conceptual Framework for Financial Reporting.

All 12 IASB members agreed with this decision.

The IASB also tentatively decided:

1. to retain the scope exclusion for executory contracts in paragraph 3 of IAS 37; and
2. to add to that paragraph a sentence linking the scope exclusion to the explanation of the transfer condition proposed in paragraph 14L of the Exposure Draft.

All 12 IASB members agreed with this decision.