Deloitte comment letter on the IASB's proposed changes regarding onerous contracts
We have responded to the IASB's exposure draft ED/2018/2 Cost of Fulfilling a Contract (Proposed amendments to IAS 37) that was published in December 2018.
We support the decision of the Board to limit the proposed amendments to the addition of a definition of what constitutes cost of fulfilling a contract when assessing whether a contract is onerous and we agree that defining the cost of fulfilling a contract as those costs that relate directly to the contract provides the most relevant information.
Download the full comment letter below.