At its meeting on July 25-27, 2023, the IASB discussed stakeholder feedback on discount rates for provisions within the scope of IAS 37—specifically, on whether to include non-performance risk in the risks reflected in the rates. IASB members provided views on which of four possible approaches to amending IAS 37 they would like to pursue further in response to the stakeholder feedback. The IASB tentatively decided to specify that: (i) the expenditure required to settle an obligation comprises the costs that relate directly to settling the obligation; and (ii) the costs that relate directly to settling an obligation consist of both: (a) the incremental costs of settling the obligation; and (b) an allocation of other costs that relate directly to settling obligations of that type.

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