IFRS® Standards

Onerous Contracts – Cost of Fulfilling a Contract (Proposed amendments to IAS 37)

Summary

The Accounting Standards Board (AcSB) has issued its Exposure Draft that corresponds to the International Accounting Board’s (IASB) Exposure Draft on this topic.

The proposed amendment relates to the assessment of whether a contract is onerous, and would:

Staff Contact(s)

Sean Wang, CPA, CA, CFA

Principal, Accounting Standards Board

Project Status

  • Information gathering

    Completed prior to July 2018

  • Approving project

    The IASB approved this project in July 2018

  • Consulting stakeholders

    IASB Exposure Draft issued in December 2018

    AcSB Exposure Draft issued in January 2019

    The AcSB consulted with its IFRS Discussion Group in January 2019

  • Deliberating feedback

    The IASB and the AcSB are deliberating comments on their Exposure Drafts

  • Final pronouncement

Read the AcSB’s response letter to the IASB’s Exposure Draft, “Onerous Contracts – Cost of Fulfilling a Contract (Proposed amendments to IAS 37). ”

Meeting & event summaries


April 25, 2019

AcSB Decision Summary – April 9, 2019

The AcSB discussed the draft response letter to the International Accounting Standard Board’s (IASB) Exposure Draft “Onerous Contracts – Cost of Fulfilling a Contract .” The Board directed the staff to make amendments based on its comments. The Board’s final response letter will be sent to the IASB by the April 15, 2019, deadline.

News


April 26, 2019

News

AcSB Response – Onerous Contracts – Cost of Fulfilling a Contract

On April 15, 2019, the AcSB responded to the IASB’s Exposure Draft, Onerous Contracts – Cost of Fulfilling a Contract (Proposed amendments to IAS 37). This exposure draft seeks to specify the costs an entity should include in determining the “cost of fulfilling” a contract for the purpose of assessing whether a contract is onerous. Read our letter to understand the matters we raised to the IASB for further consideration.

January 10, 2019

Document for Comment

IASB Exposure Draft – Onerous Contracts – Cost of Fulfilling a Contract (Proposed amendments to IAS 37)

The IASB has issued an Exposure Draft proposing amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets. Canadian stakeholders are encouraged to submit their comments to the IASB by April 15, 2019.

January 10, 2019

Document for Comment

AcSB Exposure Draft – Onerous Contracts – Cost of Fulfilling a Contract (Proposed amendments to IAS 37)

The AcSB has issued its Exposure Draft that corresponds to the IASB’s Exposure Draft on this topic. Stakeholders are encouraged to submit their comments by April 15, 2019.

Disclaimer

This project summary has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further Board deliberations. Decisions to publish Handbook material are final only after a formal ballot process.