IAS 37 Provisions, contingent liabilities and contingent assets


In case of accounts payable there is little or no uncertainty relating to the amount due to a supplier or the timing when it becomes due. But if there is uncertainty about either the timing or the amount of the future expenditure required in settlement, we speak about provisions. The question arises, how the amount to be recognised as provisions shall be determined. 

IAS 37 standard sets out the recognition, measurement and disclosure requirements of provisions, and it also deals with contingent assets and contingent liabilities. This course explains the concept and accounting treatment of provisions, contingent liabilities and contingent assets according to IAS 37 using practical examples and interim tests to enhance understanding. 

This course will enable you to:

  • understand the concept and define key characteristics of provisions
  • to understand the concept of contingent liabilities and contingent assets
  • distinguish contingent liabilities from liabilities and provisions
  • apply the definition of “probable”
  • identify recognition criteria for provisions
  • understand how to measure provisions in different situations
  • define accounting treatment of provisions, contingent liabilities and contingent assets
  • identify specific type of provisions, like onerous contracts and restructuring provisions
  • review IAS 37 standard's disclosure requirements

Further information:

  • Training hours: 60 minutes 
  • Languages: English, Hungarian, Russian, Serbian, Croatian

This e-learning course is part of an e-learning series designed by PwC Academy Hungary which aims to provide a comprehensive overview of the application of IFRS (IAS) standards to finance and accounting experts who are already familiar with fundamental (local) accounting and reporting processes.


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Contact us

Ana Cetkovic

Ana Cetkovic

PwC's Academy Coordinator, PwC Montenegro

Tel: +382 67 643 304