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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

The IASB first discussed this issue in July 2018. An exposure with comments requested by 15 April 2019 was published on 13 December 2018.

 

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

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.