An onerous contract is an accounting term for a contract that will cost a company more to fulfill than the company will receive in return.

30 нояб. 2023 г. · Onerous contracts are those where the costs to fulfill a contract exceed the consideration expected to be received under the contract.

Some people say that for a company to faithfully represent its obligations under a contract, it must account for the full costs of fulfilling those obligations.

It's also important to note that the Generally Accepted Accounting Principles (GAAP) – used in the U.S. – don't recognise onerous contracts.

14 мая 2020 г. · Our new seven-step guide sets out a logical approach to accounting for loss-making contracts under IFRS Accounting Standards.

28 авг. 2020 г. · IAS 37 defines an onerous contract as a contract in which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits.

This article addresses the technical matter of onerous lease contracts and their impairment and then considers two types of approach to SBR exam questions.

16 июл. 2024 г. · Onerous contracts are those contracts for which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be ...

25 апр. 2022 г. · In this article, we look at how contracts that are expected to be unprofitable when written (ie, onerous on initial recognition) would be accounted for under ...

Accounting for onerous contracts · specify that the “cost of fulfilling” a contract comprises the “costs that relate directly to the contract”; · provide ...