Provisions—Targeted Improvements

The Board met on 30 January 2020 to decide whether to add to its work plan a project to amend aspects of IAS 37 Provisions, Contingent Liabilities and Contingent Assets, and, if so, what the scope of the project should be.

All 14 Board members confirmed they were satisfied that the Board had sufficient information to to make a decision.

The Board decided to add to its work plan a project to:

1. align the liability definition and requirements for identifying liabilities in IAS 37 with the Conceptual Framework for Financial Reporting;
2. clarify which costs to include in the measure of a provision; and
3. specify whether the rate at which an entity discounts a provision should reflect the entity’s own credit risk.

All 14 Board members agreed with this decision.

The Board decided not to include any other matters in the scope of the project.

Eleven of 14 Board members agreed and three Board members disagreed with this decision.