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MSR 37

IAS 37 vs. liabilities and provisions for liabilities

10 February 2020
Paulina PRUSIK
The consequences of applying the prudence principle and the matching principle involve recognising provisions and disclosing contingent liabilities. In practice, these areas stir a lot of controversy because of the danger of being subjective, so typical for any decision-making under uncertainty. In line with IAS 37, provisions are liabilities and must have all the characteristics of liabilities as being a balance sheet item.