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IFRS® Accounting Standards

Provisions – Targeted Improvements


The Accounting Standards Board (AcSB) is participating in the International Accounting Standards Board’s (IASB) project to improve IAS 37 Provisions, Contingent Liabilities and Contingent Assets in the following three aspects: 

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

The AcSB’s due process includes:

  • ensuring that Canadian entities’ financial reporting needs are considered by the IASB; and
  • issuing the AcSB’s own exposure draft on each IASB proposal.

Subject to the responses to the AcSB’s Exposure Draft on whether the IASB’s proposals are appropriate for application in Canada, the AcSB expects that the amendments will be incorporated into Canadian GAAP in accordance with the AcSB’s strategy of adopting IFRS Standards for publicly accountable enterprises.

Staff Contact(s)

Jayshal Rajendra Daya, CPA, CA Principal, Accounting Standards Board

Project Status

  • Information gathering

    Completed prior to January 2020

  • Approving project

    The IASB added the project to its agenda in January 2020

  • Engaging Communities
  • Deliberating feedback
  • Final pronouncement

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 voting process.