ASCG comment letter on the IASB ED/2024/8 (Amendments to IAS 37)

The ASCG has submitted to the IASB a comment letter in response to the IASB’s ED/2024/8 Provisions—Targeted Improvements (Proposed amendments to IAS 37). The comment letter was also sent to EFRAG.

We support the IASB’s efforts to clarify and amend existing IAS 37 requirements. Overall, we agree with the proposals as they seem to align IAS 37 requirements with the revised Conceptual Framework and to basically add to clarity.

As regards the present obligation recognition criterion, we consider the proposed new require­ment (in particular, the three conditions) not the best approach to address current challenges. In our view, more clarity about whether and when to recognise a provision comes along with more challenges as regards measuring that provision. Further, we are not fully convinced by the new or amended guidance and examples.