Global Rulemaker to Draft Changes to Future-Expenses Accounting

A global accounting rulemaker decided Wednesday to press ahead with proposed changes to the way firms account for provisions, the funds set aside to cover likely future expenses, such as bad debts.

All 14 International Accounting Standards Board members voted to write up the changes for final approval, with an exposure draft of the proposals scheduled for November. The proposed changes are to International Accounting Standard 37 Provisions, Contingent Liabilities and Contingent Assets. They are designed to clarify things such as which costs to include in a provision.

• The IASB had approved three changes to IAS 37 at previous meetings, ...