CONTENTS

COMPILATION DETAILS

Comparison With IAS 37

Accounting Standard

AASB 137 Provisions, Contingent Liabilities and Contingent Assets

Paragraphs

Objective

Application Aus1.1 – Aus1.7

Reduced Disclosure Requirements Aus1.8 – Aus1.9

Scope 1 – 9

Definitions 10

Provisions and Other Liabilities 11

Relationship between Provisions and Contingent Liabilities 12 – 13

Recognition

Provisions 14

Present Obligation 15 – 16

Past Event 17 – 22

Probable Outflow of Resources Embodying Economic Benefits 23 – 24

Reliable Estimate of the Obligation 25 – 26

Recognition of Liabilities Arising from Local Government and Government Existing Public Policies, Budget Policies, Election Promises or Statements of Intent Aus26.1 – Aus26.2

Contingent Liabilities 27 – 30

Contingent Assets 31 – 35

Measurement

Best Estimate 36 – 41

Risks and Uncertainties 42 – 44

Present Value 45 – 47

Future Events 48 – 50

Expected Disposal of Assets 51 – 52

Reimbursements 53 – 58

Changes in Provisions 59 – 60

Use of Provisions 61 – 62

Application of the Recognition and Measurement Rules

Future Operating Losses 63 – 65

Onerous Contracts 66 – 69

Restructuring 70 – 83

Disclosure 84 – 92

Effective Date 99 – 101

GUIDANCE ON IMPLEMENTING AASB 137

A. Tables – Provisions, Contingent Liabilities, Contingent Assets and Reimbursements Page 19

B. Decision Tree Page 20

C. Examples: Recognition Page 21

D. Examples: Disclosures Page 25

DELETED IAS 37 TEXT Page 26

Australian Accounting Standard AASB 137 Provisions, Contingent Liabilities and Contingent Assets (as amended) is set out in paragraphs Aus1.1 – 101. All the paragraphs have equal authority. Terms defined in this Standard are in italics the first time they appear in the Standard. AASB 137 is to be read in the context of other Australian Accounting Standards, including AASB 1048 Interpretation of Standards, which identifies the Australian Accounting Interpretations. In the absence of explicit guidance, AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors provides a basis for selecting and applying accounting policies.