March 2025 Exposure Draft Updates

IFRS Accounting Standard Exposure Draft – Provisions – Targeted Improvements, Proposed amendments to IAS 37

The International Accounting Standards Board issued an exposure draft to improve the requirements for recognizing and measuring provisions. The proposed amendments:

• clarify how to assess when to record provisions, which may lead to earlier recognition of some provisions such as levies;
• provide tighter requirements for discount rates used in measuring long-term provisions; and
• include an explicit requirement on which costs to include in the measure of a provision.

The proposals would most likely be relevant for companies that have large long-term asset decommissioning obligations or are subject to levies and similar government-imposed charges.

The exposure draft does not specify an effective date for the amendments, but the IASB will decide on an effective date that will provide sufficient time to prepare for the new requirements. Comments are requested by March 12, 2025.

Check out CPA Ontario’s knowledge hub and resources web page regularly to stay up to date on the latest developments.