Provisions—Targeted Improvements

The IASB met on 18 May 2026 to discuss:

• further details of a model for possible application requirements for levies; and
• consequences of these application requirements for a requirement proposed in paragraph 14Q of the Exposure Draft Provisions—Targeted Improvements.

Application requirements for levies (Agenda Paper 22A)

At its February 2026 meeting, the IASB had tentatively decided to supplement the ‘past-event’ recognition condition proposed in the Exposure Draft with application requirements for levies. Those application requirements would specify a principle supported by a constraining presumption.

At this meeting, the IASB tentatively decided:

1. to make the constraining presumption non-rebuttable; and
2. to express the resulting application requirements as:
   1. a general requirement—the past-event condition is met when an entity has obtained the economic benefit or conducted the activity required by levy legislation for a levy to be payable (the relevant economic benefit or activity); and
   2. a supporting principle—if more than one economic benefit or activity is required for a levy to be payable, the relevant economic benefit or activity is the one that best reflects the economic benefit or activity the government is seeking to levy.

Eleven of 13 IASB members agreed with decision (a) and all 13 IASB members agreed with decision (b).

Consequences for paragraph 14Q (Agenda Paper 22B)

The IASB tentatively decided to omit from IAS 37 Provisions, Contingent Liabilities and Contingent Assets the requirement proposed in paragraph14Q of the Exposure Draft.

Twelve of 13 IASB members agreed with this decision.