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[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section admin_label=”Section” fullwidth=”off” specialty=”off”][et_pb_row admin_label=”Row”][et_pb_column type=”1_2″][et_pb_text admin_label=”Text” background_layout=”light” text_orientation=”center” text_font_size=”14″ use_border_color=”off” border_color=”#ffffff” border_style=”solid”] [button link=”http://www.frs102.com/members/premium-toolkit/” type=”big” color=”red”] Return to Main Index[/button] [/et_pb_text][/et_pb_column][et_pb_column type=”1_2″][et_pb_text admin_label=”Text” background_layout=”light” text_orientation=”center” text_font_size=”14″ use_border_color=”off” border_color=”#ffffff” border_style=”solid”] [button link=”https://uk.frs102.com/members/premium-toolkit/section-34/” type=”big” color=”red”] Return to Section 34 Home[/button] [/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section admin_label=”Section” fullwidth=”off” specialty=”off” transparent_background=”off” allow_player_pause=”off” inner_shadow=”off” parallax=”off” parallax_method=”off” padding_mobile=”off” make_fullwidth=”off” use_custom_width=”off” width_unit=”on” make_equal=”off” use_custom_gutter=”off” gutter_width=”3″][et_pb_row admin_label=”Row”][et_pb_column type=”4_4″][et_pb_text admin_label=”Main Body Text” background_layout=”light” text_orientation=”justified” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]Funding Commitments
Extract from FRS102: Section 34.57-.34.63
34.57 An entity that commits to provide resources to other entities shall apply the requirements of paragraphs 34.58 to 34.63 and the accompanying guidance at Appendix A to this section, except for commitments to make a loan to which entities shall apply Section 11 Basic Financial Instruments or Section 12 Other Financial Instruments Issues, as applicable
34.58 When applying these paragraphs, the requirements of Section 2 Concepts and Pervasive Principles and Section 21 Provisions and Contingencies shall also be taken into consideration.
Recognition
34.59 An entity shall recognise a liability and, usually, a corresponding expense, when it has made a commitment that it will provide resources to another party, if, and only if:
(a) the definition and recognition criteria for a liability have been satisfied;
(b) the obligation (which may be a constructive obligation) is such that the entity cannot realistically withdraw from it; and
(c) the entitlement of the other party to the resources does not depend on the satisfaction of performance-related conditions.
34.60 Commitments that are performance-related will be recognised when those performance-related conditions are met.
Measurement
34.61 An entity shall measure any recognised liability at the present value of the resources committed.
Disclosure
34.62 An entity that has made a commitment shall disclose the following:
(a) the commitment made;
(b) the time-frame of that commitment;
(c) any performance-related conditions attached to that commitment; and
(d) details of how that commitment will be funded.
34.63 The above disclosures may be made in aggregate, providing that such aggregation does not obscure significant information. However, separate disclosure shall be made for recognised and unrecognised commitments.
OmniPro comment
The above requirements are very similar to Section 21 Provisions. See section 21 of this website for further details.
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