The IASB has launched a three-month consultation for feedback on plans to update IAS 37 Provisions, Contingent Liabilities and Contingent Assets with a view to improving the requirements for recognising and measuring provisions on company balance sheets.

The amendments are designed to improve transparency and comparable information about companies’ provisions for assessing future cash flows and financial positions to give investors more insight into the financial statements and impact of provisions on the balance sheet.

The proposed amendments to IAS 37 would clarify how companies assess when to record provisions and how to measure them, when the liabilities have an uncertain timing or amount.