ICDS X: Standards for Provisions & Contingent Liabilities Differ from Ind AS 37; Annual Reviews Required
ICDS X outlines the standards for provisions, contingent liabilities, and contingent assets, aligning closely with AS 29 but differing from Ind AS 37. It excludes certain financial instruments, executory contracts, and insurance business transactions. Provisions are recognized when a present obligation from past events exists, with a reliable estimate and reasonable certainty of economic outflow. Contingent liabilities and assets are not recognized unless future economic benefits are reasonably certain. Provisions must be reviewed annually and adjusted based on current estimates. Disclosures are extensive and align with AS 29 and Ind AS 37, focusing on contingent assets and liabilities.