Objective of the standard

Learning objectives

• Explain the objective of IAS 37: appropriate recognition criteria and measurement bases for provisions and contingencies, and sufficient information about their nature, timing and amount.L1

Normative references

• IAS 37The standard aims to ensure that appropriate recognition criteria and measurement bases are applied to provisions, contingent liabilities and contingent assets, and that sufficient information is disclosed in the notes to enable users to understand their nature, timing and amount.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

4 questions

• The objective of IAS 37 is limited to setting recognition criteria for provisions; what the entity states in its notes about these items is governed entirely by other standards.L1
• IAS 37 seeks to ensure that appropriate measurement bases are applied not only to provisions but also to contingent liabilities and contingent assets.L1
• Which set of items does the objective of IAS 37 target?L1
• Under the objective of IAS 37, which aspects of provisions and contingencies should the notes enable users to understand?L1