
Accounting Standard 29 (REVISED): AS 29 (Revised) came into effect in respect of accounting periods commenced on or after 1-4-2004. The objective of AS 29 (Revised) is to ensure that appropriate recognition criteria and measurement bases are applied to provisions and contingent liabilities and sufficient information is disclosed in the notes to the financial statements to enable users to understand their nature, timing and amount. The objective of AS 29 (Revised) is also to lay down appropriate accounting for contingent assets.
Ind AS 37 Provisions, Contingent Liabilities and Contingent Assets
The objective of Ind AS 37 is to ensure that appropriate recognition criteria and measurement bases are applied to provisions, contingent liabilities and contingent assets and that sufficient information is disclosed in the notes to enable users to understand their nature, timing and amount.
Ind AS 37 prescribes the accounting and disclosures for provisions, contingent liabilities and contingent assets, except:
- (a) those resulting from executory contracts, except where the contract is onerous; and
- (b) those covered by another Standard.
Ind AS 37 also do not apply to financial instruments (including guarantees) that are within the scope of Ind AS 109, Financial Instruments.
Difference Between AS 29 and Ind AS 37
AS 29 | Ind AS 37 |
AS 29 prohibits discounting of provisions except in case of decommissioning, restoration and other similar liabilities, that are considered as a part of cost of PPE. | Ind AS 37 requires discounting the amounts of provision, if the effect of time value of money is material. |
AS 29 requires the disclosure of contingent assets in the report of approving authority but prohibits the disclosure of the same in financial statements. | Ind AS 37 requires the disclosure of contingent assets in financial statements. |
AS 29 requires creation of provision as a result of:
|
Ind AS 37 requires creation of provision in respect of constructive obligation. Consequently, the terms “legal obligation” and “constructive obligation” have been inserted and defined in Ind AS 37. |
There is no such provision in the AS 29. | Ind AS 37 specifically states that before a separate provision is created for “onerous contract”, an impairment loss, if any, on the assets dedicated or allocated for such contract must be recognized. |
AS 29 is silent on these issues. |
Ind AS 37 provides guidance on:
|
AS 29 states that no provision is to be made for identifiable future operating losses up to the date of restructuring. | Ind AS 37 states that no provision is to be made for identifiable future operating losses up to the date of restructuring, except losses related to onerous contract. |
Popular Articles
- Difference Between AS 9 and Ind AS 18 - Revenue Recognition
- Difference Between AS 10 and Ind AS 16: All you need to know about
- Difference Between AS 19 and Ind AS 17 - Leases
- Difference Between AS 7 and Ind AS 11 - Construction Contracts
- Difference Between AS 22 and Ind AS 12: all you need to know about
Recent Articles
- Difference Between AS 14 and Ind AS 103 - all you need to know about
- Difference Between AS 29 and Ind AS 37: all you need to know about
- Difference Between AS 28 and Ind AS 36: Impairment of Assets
- Difference Between AS 26 and Ind AS 38: Intangible Assets
- Difference Between AS 25 and Ind AS 34: Interim Financial Reporting
- Difference Between AS 24 and Ind AS 105: all you need to know about
- Difference Between AS 22 and Ind AS 12: all you need to know about
- Difference Between AS 20 and Ind AS 33: Earnings per Share
- Difference Between AS 19 and Ind AS 17 - Leases
- Difference Between AS 18 and Ind AS 24 - Related Party Disclosures