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Why Europe’s Banking Stakeholders Are Concerned About Proposed Amendments to IAS 37 - Provisions
By Kowshika ROBINSON, Senior Manager at Haca Partners, Consulting (IFRS Advisory)
Imagine you run a major European bank. Every year, your government imposes substantial levies—sometimes amounting to hundreds of millions of euros—calculated based on your bank’s assets or activities as measured on a “reference date,” which often falls before the year in which the levy is charged (the “levy year”). Under current accounting rules, you recognize these costs in your financial statements when they become due—typically in the levy year, if your bank is still operating.
Now, new accounting...
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