What is restructuring as per IAS 37?

IAS 37 defines a restructuring as a program that materially changes the scope of a business or the manner in which it is conducted. US GAAP uses the term ‘exit activities’, which may be broader than a ‘restructuring’ under IFRS.

What is the difference between the use of the term contingent liability in US GAAP and IFRS?

Contingent Liabilities IFRS has a lower threshold for recognition as its definition of probable is > 50%, while US GAAP generally considers a contingent liability probable only when the likelihood is >75%. US GAAP and IFRS also differ with respect to the amount of the liability that is recognized.

What are the contents of IAS 37?

IAS 37 defines and specifies the accounting for and disclosure of provisions, contingent liabilities, and contingent assets. A provision is a liability of uncertain timing or amount. The liability may be a legal obligation or a constructive obligation.

What is a FASB ASC 450 Contingencies?

ASC 450, Contingencies, outlines the accounting and disclosure requirements for loss and gain contingencies.

Is FAS 5 the same as ASC 450?

5: Accounting for Contingencies (FAS 5), the original FASB pronouncement, superseded by the substantively same FASB Accounting Standards Codification (ASC) subtopic 450 -20, Contingencies: Loss Contingencies, is a principal source of guidance on accounting for impairment in a loan portfolio under GAAP.

What are the two criteria used to determine whether a contingent liability is reported in the financial statements?

What are the two criteria used to determine whether a contingent liability is reported in the financial statements? the likelihood of payment and the ability to estimate the amount of payment.

When can a provision be Recognised in accordance with IAS 37?

IAS 37 requires that a provision is only recognised where: There is a legal or constructive present obligation as a result of a past event, and. Payment is probable, and. The amount can be reliably estimated.