IASB Amendment: "IAS 37 Provisions, Contingent Liabilities and Contingent Assets"
Thursday, October 6, 2005
The Financial Reporting Committee (FRC) of the Institute of Management Accountants is writing to provide its views on the proposed Amendment to IAS 37, Provisions, Contingent Liabilities and Contingent Assets (proposed Amendment). We do not support the changes proposed, because they represent a fundamental change in the recognition criteria that we do not believe results in an improvement in financial reporting. Although we understand that the Financial Accounting Standards Board has now issued an Invitation to Comment on this issue, at the moment the changes proposed would create a significant difference between International Accounting Standards and U.S. GAAP, in direct contrast to the goal of international convergence of accounting standards.