The International Accounting Standards Board is looking for feedback on some targeted improvements it’s proposing to make to improve the requirements for recognizing and measuring provisions on corporate balance sheets.
These provisions are usually liabilities of an uncertain timing or amount, so investors would like to see more transparent and comparable information about companies’ provisions for assessing future cash flows and financial positions. The IASB’s targeted improvements aim to help companies apply the requirements more consistently and give investors more useful information.
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“Our proposals clarify the accounting requirements for provisions, helping companies provide better information for investors,” said IASB chair Andreas Barckow in a statement Tuesday.
The IASB is presenting the proposals in three documents:
The IASB is asking for feedback on the proposed amendments by March 12, 2025.
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