not apply IAS 36 on the date of initial application, but instead rely on its assessment of whether any of its leases are onerous under IAS 37. Any onerous lease provision is derecognised, and an equal amount is deducted from the carrying amou...
Firstly, the cash will continue to flow. The reported earnings may be higher in future periods as a result of the onerous lease provision being gradually released, but that doesn’t mean the landlord is getting paid any less. Secondly, unlike some other one-off items which can be positive ...
International Accounting Standard 37 (IAS 37), "Provisions, Contingent Liabilities, and Contingent Assets," classifies onerous contracts as "provisions," meaning liabilities or debts that will accrue at an uncertain time or in an unknown amount. Provisions are measured using the best estimate of t...
Also Read:Cost Plus Contract: Meaning, Types, Advantages, Example, and More In accordance with IAS 37, an onerous contract is a “provision,” i.e., it is aliability or a debtwhere the amount and timing are unknown. One can only estimate a provision on the basis of current obligations....