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Ind-AS 37: Provisions, Contingent Assets & Liabilities (Provisions…
Ind-AS 37: Provisions, Contingent Assets & Liabilities
Provisions
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Meaning
Existence of present obligation
whether legal or constructive (based on past practices
commitments etc.)
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Use
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Difference btw prov and actual payment will be treated
as change in estimate and dealt as per Ind-AS 8
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PV
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At each B/s date, we will increase prov by
interest cost on o/s liability
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Contingent Liabilities
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Only disclosed in notes to accounts
(if chance is less than 5% ie remote,
no need to disclose also)
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Contingent Assets
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Otherwise, no recognition and no disclosure
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