Provisions (IAS 37/AASB 137)

Corporate Reporting Insights

BDO's monthly newsletter, Corporate Reporting Insights, keeps you up to date with the latest Australian and global developments in corporate financial and sustainability reporting.

• How does the acquirer in a business combination account for the acquiree’s lease restoration provisions? (September 2023)
• Increasing interest rates and discounting provisions (March 2023)
• When is a provision no longer a provision? (March 2023)
• Supply chain disruptions, higher prices, and accounting standard changes – What this means for 31 December 2022 financial statements (November 2022)
• What the six recent interest rate increases mean for your 31 December 2022 financial statements (October 2022)
• Three new agenda decisions from the IFRS Interpretations Committee (August 2022)
• Have you accounted for all your 'make good' and restoration provisions? (March 2022).

BDO Global IFRS Resources

The following publications have been produced by the BDO Global IFRS group:

► IFRS at a Glance

A high level overview of International Financial Reporting Standards (IFRSs), including International Accounting Standards and Interpretations.

• IAS 37 Provisions, Contingent Liabilities and Contingent Assets
• IFRIC 1 Changes in Existing Decommissioning, Restoration and Similar Liabilities
• IFRIC 5 Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation Funds
• IFRIC 6 Liabilities arising from Participating in a Specific Market – Waste Electrical and Electronic Equipment
• IFRIC 21 Levies.

► IFR Bulletins

 Focus on latest developments in international financial reporting.

• Effects of climate-related matters on financial statements​ (IFRB 2020 14).

IFRIC agenda decisions

IFRS Interpretations Committee (the Committee) agenda decisions are those issues that the Committee decided not to take onto its agenda. Although not authoritative guidance, in practice they are regarded as being highly persuasive, and all entities reporting under IFRS should be aware of these decisions because they could impact the way particular transactions and balances are accounted for. Agenda decisions on this topic include:

• Negative low emission vehicle credits (July 2022) and FAQ
• Deposits relating to taxes other than income tax (January 2019) and FAQ
• Interest and penalties relating to income taxes (September 2017) and FAQ
• Levies raised on production of property, plant and equipment – IFRIC 21 (January 2015) and FAQ
• Measurement of liabilities arising from emissions trading schemes (May 2014) and FAQ
• A levy that is subject to a pro rata activity threshold as well as an annual threshold (March 2014) and FAQ
• Inclusion of own credit risk in discount rate (March 2011) and FAQ
• Deposits on returnable containers (May 2008) and FAQ.