Disclosure of Recognition and Measurement Rules :
For each class of provision, an enterprise should disclose:
(a) the carrying amount at the beginning and end of the period; ‘
(b) additional provisions made in the period, including increases to existing provisions;
(c) amounts used (i.e. incurred and charged against the provision) during the period; and
(d) unused amounts reversed during the period.
Provided that a Small and Medium-sized Company and a Small and Medium-sized Enterprise (Level II and Level III non-corperate entities), as defined in Appendix 1 to this Compendium, may not comply with paragraph 66 above.
An enterprise should disclose the following for each class of provision:
(a) a brief description of the nature of the obligation and the expected timing of any resulting outflows of economic benefits;
(b) an indication of the uncertainties about those outflows. Where necessary to provide adequate information, an enterprise should disclose the major assumptions made concerning future events, as addressed in paragraph 41; and
(c) the amount of any expected reimbursement, stating the amount of any asset that has been recognised for that expected reimbursement.
Provided that a Small and Medium-sized Company and a Small and Medium-sized Enterprise (Level II and Level III non-coperate entities), as defined in Appendix 1 to this Compendium, may not comply with paragraph 67 above.
Unless the possibility of any outflow in settlement is remote, an enterprise should disclose for each class of contingent liability at the balance sheet date a brief description of the nature of the contingent liability and, where practicable:
(a) an estimate of its financial effect, measured under paragraphs 35-45;
(b) an indication of the uncertainties relating to any outflow; and
(c) the possibility of any reimbursement.
In determining which provisions or contingent liabilities may be aggregated to form a class, it is necessary to consider whether the nature of the items is sufficiently similar for a single statement about them to fulfill the requirements of paragraphs 67 (a) and (b) and 68 (a) and (b). Thus, it may be appropriate to treat as a single class of provision amounts relating to warranties of different products, but it would not be appropriate to treat as a single class amounts relating to normal warranties and amounts that are subject to legal proceedings.
Where a provision and a contingent liability arise from the same set of circumstances, an enterprise makes the disclosures required by paragraphs 66-68 in a way that shows the link between the provision and the contingent liability.
Where any of the information required by paragraph 68 is not disclosed because it is not practicable to do so, that fact should be stated.
In extremely rare cases, disclosure of some or all of the information required by paragraphs 66-70 can be expected to prejudice seriously the position of the enterprise in a dispute with other parties on the subject matter of the provision or contingent liability. In such cases, an enterprise need not disclose the information, but should disclose the general nature of the dispute, together with the fact that, and reason why, the information has not been disclosed.