IAS 37 — Onerous contracts
Background
This project looks into which costs a company should include when assessing whether a contract will be loss-making. In picking up this project, the IASB supported a proposal by the IFRS Interpretations Committee to amend IAS 37 Provisions, Contingent Liabilities and Contingent Assets to specify that the ‘cost of fulfilling’ a contract comprises the ‘costs that relate directly to the contract’.
Current status of the project
This project has been completed. The IASB issued Onerous Contracts — Cost of Fulfilling a Contract (Amendments to IAS 37) on 14 May 2020.
Project milestones
Date | Development | Comments |
---|---|---|
July 2018 | Issue first discussed by the IASB | |
13 December 2018 | ED/2018/2 Onerous Contracts — Cost of Fulfilling a Contract (Proposed amendments to IAS 37) published | Comments requested by 15 April 2019 |
14 May 2020 | Onerous Contracts — Cost of Fulfilling a Contract (Amendments to IAS 37) issued | amendments are effective for annual reporting periods beginning on or after 1 January 2022 |