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Writer's pictureKirk Hartley

Change Ahead – International Accounting Standards and Contingent Liabilities – IAS 37 Re

Yesterday’s post was tied to US FAS 5 rules and related disclosures regarding contingent liabilities, such as mass tort claims. As the financial world goes global, there will be change ahead as the International Accounting Standards take control. It will be interesting to watch the evolution from FAS 5 disclosure to isclosures under IAS 37 . The subject includes political considerations, and provoked past comments after a 2005 exposure draft for IAS 37.

Go here to use Deloitte’s complete collection of infomration on 2010 proposed amendments to IAS 37 and other expert materials from Deloitte. The same sources on just IAS 37 also are pasted below from Deloitte’s page:


IASB Reexposes Proposals for the Measurement of Liabilities in IAS 37


Affects:

Entities reporting under IFRSs.

Summary:

On January 5, 2010, in light of feedback it had received on its 2005 exposure draft on IAS 37, the IASB published for public comment proposed amendments to the liability measurement section of the standard. The proposed amendments clarify the measurement objective, emphasize that liabilities should not be measured at hypothetical transfer or cancellation prices, add guidance on applying expected value techniques, and specify how to identify and measure relevant future outflows.

Next Steps:

The IASB aims to complete the replacement of IAS 37, including final guidance resulting from the reexposed section, in 2010. Comments on the exposure draft are due by April 12, 2010.

Other Resources:



For more information, see the press release on the IASB’s Web site as well as Deloitte’s January 2010 IAS Plus Update. •"

"Contingencies

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