CORRELATION AND IMPLICATIONS RELATING TO PROVISIONS AND IDENTIFICATION OF RISKS WHICH DETERMINE THEIR CONSTITUTION
CORRELATION AND IMPLICATIONS RELATING TO PROVISIONS AND IDENTIFICATION OF RISKS WHICH DETERMINE THEIR CONSTITUTION

Summary/Abstract: In order to optimize costs and ensure the sustainability of businesses less affected by the COVID pandemic crisis 19, the restructuring of activities in accordance with the provisions of IAS 37 - Provisions, contingent liabilities and contingent assets may be a viable solution. In this context, this article aims to provide the necessary clarifications in order to provide a basis for assessing the appropriate recognition criteria applied to provisions, contingent liabilities and contingent assets, to ensure full information support in the explanatory notes to the financial statements, necessary for users. accounting information in substantiating decisions. The results of the present study emphasize that, now more than ever, in a pandemic context, professional judgment is crucial in determining when the conditions for recognizing a provision in the financial statements are met and in accounting for amounts that can be recognized as part of this. provision, in accordance with IAS 37. We believe that this study can be particularly useful, in this pandemic context, to professional accountants engaged in financial reporting work, but also to regulatory bodies that can provide solutions to revise this standard.

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