IAS 37 Provisions, Contingent Liabilities, and Contingent Assets outline the accounting for provisions (liabilities of u

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IAS 37 Provisions, Contingent Liabilities, and Contingent Assets
outline the accounting for provisions (liabilities of uncertain
timing or amount), together with contingent assets (possible
assets) and contingent liabilities (possible obligations and
present obligations that are not probable or not reliably
measurable). Provisions measured at the best estimate (including
risks and uncertainties) of the expenditure required to settle the
present obligation reflect the present value of the expenditures
required to settle the obligation where the time value of money is
material. Required: Before introducing IAS 37, the disclosure of
contingent assets was not so required. Discuss the possible reasons
why this was the case and evaluate the resulting business
environment changes that might have encouraged or necessitated the
disclosure of contingent assets other than IAS 37 compliance.