IAS-37 – Provisions, Contingent Liabilities and Contingent Assets

The standard set out three specific applications of these general requirements:

(a) a provision should not be recognised for future operating losses;

(b) a provision should be recognised for an onerous;

(c) a provision for restructuring costs should be recognised only when an enterprise has a detailed formal

plan for the restructuring and has raised a valid expectation in those affected that it will carry out the restructuring by starting to implement that plan or announcing its main features to those affected by it.