Under IFRS, ‘Provisions or (-) reversal of provisions’ shall include the net changes in the provision amounts occurred during the period that are different from the increase in the discounted amount of a provision arising from the passage of time and the effect of any change in the discount rate on provisions. The latter shall be reported in the item ‘Income or (-) expenses on non-operating liabilities’ (IFRS 18. B53, B54).
‘Provisions or (-) reversal of provisions. Commitments and guarantees given’ shall include the net charges in the ‘Statement of profit or loss’ for provisions on all commitments and guarantees in the scope of IFRS 9, IAS 37 or IFRS 17 in accordance with paragraph 11 of this Part, or under national GAAP based on BAD. Under IFRS, any change in the fair value of commitments and financial guarantees measured at fair value shall be reported in ‘Gains or (-) losses on financial assets and liabilities designated at fair value through profit or loss, net’. Provisions therefore include the impairment amount for commitments and guarantees for which impairment is determined in accordance with IFRS 9 or their provisioning follows IAS 37 or they are treated as insurance contracts under IFRS 17.