Thursday 2 December 2021


12:00 pm


1.5 CPD Hours

Session Topic

Getting provisioning right – best estimate, timely recognition, and much more

There are many different types of provisions – restructuring, restoration, onerous contracts, warranties, refunds, and lease make-good.  Some fall within the scope of AASB 137 Provisions, Contingent Liabilities and Contingent Assets. Others do not.  Determining the amount of a provision is not straightforward, nor are the attendant disclosures.  Recent amendments and interpretations add further complexity.

This session will address:

  • Some provisions no longer exist because of AASB 15 Revenue from Contracts with Customers and AASB 16 Leases What makes a provision distinct from other liabilities?
  • When must a provision be recognised?
  • How is provision measured?
  • How is estimation uncertainty considered?
  • Recent amendments clarifying costs to be included when determining whether a contract will be loss-making
  • How to get right the distinction between a liability and a contingency
  • Related interpretations, and
  • Disclosures under relevant standards, including tier 2 specified disclosures.
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This session is presented by:

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Carmen Ridley

Principal | Australian Financial Reporting Solutions

Carmen has an excellent knowledge of financial reporting through significant experience with a number of major accounting firms in both the external audit and technical divisions and spending significant time analysing and interpreting accounting standards for clients.

Carmen is a former Board member of the AASB (2012 – 2020) and a former member of the IFRS for SME implementation committee (2020 – 2023).