EC staff consolidated version as of 16 September 2009,
FOR INFORMATION PURPOSES ONLY

EN – EU IAS 37

International Accounting Standard 37
Provisions, Contingent Liabilities and
Contingent Assets
Objective
The objective of this Standard is to ensure that appropriate recognition criteria and measurement bases are applied to provisions, contingent liabilities and contingent assets and that sufficient information is disclosed in the notes to enable users to understand their nature, timing and amount.

Scope
1

This Standard shall be applied by all entities in accounting for provisions, contingent liabilities and contingent assets, except:
(a)

those resulting from executory contracts, except where the contract is onerous; and

(b)

[deleted]

(c)

those covered by another Standard.

2

This Standard does not apply to financial instruments (including guarantees) that are within the scope of
IAS 39 Financial Instruments: Recognition and Measurement.

3

Executory contracts are contracts under which neither party has performed any of its obligations or both parties have partially performed their obligations to an equal extent. This Standard does not apply to executory contracts unless they are onerous.

4

[Deleted]
5

When another Standard deals with a specific type of provision, contingent liability or contingent asset, an entity applies that Standard instead of this Standard. For example, some types of provisions are addressed in Standards on:

(a)

construction contracts (see IAS 11 Construction Contracts);

(b)

income taxes (see IAS 12 Income Taxes);

(c)

leases (see IAS 17 Leases). However, as IAS 17 contains no specific requirements to deal with operating leases that have become onerous, this Standard applies to such cases;

(d)

employee benefits (see IAS 19 Employee Benefits); and

(e)