EFRAG requests comments on amendments to IAS 37
Released 24 June 2020
EFRAG has issued a Draft Endorsement Advice letter and a separate invitation to comment relating to the endorsement for use in the EU of Onerous Contracts – Cost of Fulfilling a Contract (Amendments to IAS 37).
The objective of the amendments is to clarify the requirements of IAS 37 on onerous contracts regarding the assessment of whether, in a contract, the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it.
The amendments become effective for annual periods beginning on or after 1 January 2022, with earlier application permitted.
Comments are requested by 7 September 2020.
Further information can be found at https://www.efrag.org/News/Project-424/EFRAG-requests-comments-on-its-Draft-Endorsement-Advice-on-Onerous-Contracts---Cost-of-Fulfilling-a-Contract-Amendments-to-IAS-37.