// definition
Accounting provision
Liability of uncertain timing or amount
Short definition
Under IAS 37, a liability of uncertain timing or amount. Recognition requires a present obligation arising from a past event, a probable outflow of resources and a reliable estimate of the amount. Recognising an expense and making the payment can occur at different dates. Termination benefits fall under IAS 19.
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Knowledge map
Intuition
An expense and an obligation can be recognised before the corresponding payment.
Related analyses
Primary sources
- IFRS Foundation, IAS 37Definition of provisions.
- IFRS Foundation, IFRIC Update, March 2024IAS 37 paragraph 14: present obligation, probable outflow and reliable estimate.
- IFRS Foundation, IAS 19Termination benefits: recognition of the liability and expense at the earlier of the two specified dates.