Ind AS 37 tabular mode

Ind AS 37, which is titled "Provisions, Contingent Liabilities and Contingent Assets," establishes the principles for recognizing and measuring provisions, contingent liabilities, and contingent assets. Below is a summary of key aspects of Ind AS 37 in tabular format: | **Aspect** | **Details** | |-----------------------------------|-----------------------------------------------------------------------------------------------------| | **Objective** | To ensure that appropriate recognition, measurement, and disclosure of provisions, contingent liabilities, and contingent assets are made in financial statements. | | **Scope** | Applies to all provisions, contingent liabilities, and contingent assets, except for those covered by other Ind AS (e.g., Lease liabilities). | | **Definitions** | - **Provision**: A liability of uncertain timing or amount. <br> - **Contingent Liability**: A possible obligation arising from past events, dependent on future events. <br> - **Contingent Asset**: A possible asset resulting from past events, which will be confirmed only by future events. | | **Recognition Criteria** | - Recognize a provision when: <br> 1. An entity has a present obligation. <br> 2. The obligation arises from past events. <br> 3. It is probable that an outflow of resources will be required to settle the obligation. <br> 4. The amount can be estimated reliably. | | **Measurement** | - Provision should be measured at the best estimate of the expenditure required to settle the present obligation. <br> - If the effect of the time value of money is material, provisions should be discounted to present value using a pre-tax rate reflecting current market assessments of the time value of money. | | **Contingent Liabilities** | - Do not recognize in financial statements. <br> - Disclose if there is a possible obligation that may require outflow of resources. | | **Contingent Assets** | - Do not recognize in financial statements. <br> - Disclose when the inflow of economic benefits is probable. | | **Onerous Contracts** | A contract is onerous when the unavoidable costs of meeting the obligations exceed the economic benefits expected to be received. Provisions should be recognized in such cases. | | **Disclosure Requirements** | - For each class of provision, disclose: <br> 1. The nature of the obligation. <br> 2. The expected timing of any resulting outflows of economic benefits. <br> 3. An indication of the uncertainty about the amount or timing of those outflows. <br> 4. The amount of any expected reimbursement (e.g., from insurance). | | **Changes in Provisions** | Changes in estimates or obligations should be reflected in the financial statements when they occur. | This tabular summary provides an overview of the key components and requirements of Ind AS 37. For full guidance, refer to the complete Ind AS text and any relevant amendments or interpretations issued by the relevant authority in your jurisdiction.