IAS 37 provisions template
An Excel template that applies IAS 37 from the obligating event to the note. It tests every obligation, claim and levy against the recognition criteria, measures each provision at its best estimate, rolls each provision forward and drafts the disclosures. It comes with a fully worked example for a fictitious Irish manufacturer.
What it does
Tests up to 25 items against the IAS 37 decision tree – scope, present obligation, probability and reliable estimate – and concludes provision, contingent liability (disclosed or remote) or nothing, using your thresholds for “remote” and “virtually certain”.
Measures the best estimate by expected value for large populations such as warranties, by the most likely outcome for single obligations with the IAS 37.40 indicator and a recorded judgement, or by the midpoint of a range, discounting where the effect is material.
Applies the restructuring criteria in IAS 37.72–79, including the sale of an operation, and sorts each expected cost into what may and may not be provided for.
Tests onerous contracts using the cost of fulfilling in IAS 37.68A – incremental costs plus an allocation of directly related costs – and the least net cost of exiting.
Models decommissioning and restoration obligations under IFRIC 1: present value, unwinding, changes in cash flows and in the discount rate, and where each change is recognised under the cost or revaluation model, with a ten-year unwinding projection.
Tests the timing of levies under IFRIC 21, recognises reimbursements as separate assets and lists contingent assets.
Rolls each provision forward and produces the IAS 37.84 movement table by class, the current and non-current split, the effect on profit or loss, assets and OCI, and the journals.
Drafts the note for each class, the contingent liability and contingent asset disclosures, the IAS 37.92 wording and the accounting policy (IFRS 18 or IAS 1), with an 18-point checklist and 24 automatic checks.
What you get
One Excel workbook (.xlsx) with Instructions, the blank template and a worked example: a fictitious Irish heat pump manufacturer with warranties, a legal claim covered by insurance, a restructuring, an onerous supply contract, decommissioning and dilapidations, an environmental clean-up, a levy, contingent liabilities and contingent assets.
Clearly marked input cells, protected formulas and built-in checks, with a status line on every tab.
Works in Microsoft Excel 2010 or later (Windows or Mac). No macros.
Scope
One entity in one presentation currency, under IFRS Accounting Standards: IAS 37 as currently issued, with IFRIC 1 and IFRIC 21. The IASB’s Provisions – Targeted Improvements project is still being redeliberated and is not reflected. Employee termination benefits are measured under IAS 19, and decommissioning under the revaluation model follows IFRIC 1.6(a) only.
Testing the assets behind an onerous contract first? See the CGU impairment template. Capitalising a decommissioning cost? Use it with the free Fixed asset register template.
Designed for finance teams, auditors and advisers preparing or reviewing IFRS financial statements. It is a working aid: it does not replace the Standards or professional judgement, and its scope and limitations are set out in the Instructions tab.
