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IAS 37 — Onerous contracts


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

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.