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.