Comments are requested by April 1 on IVS 220 Non-Financial Liabilities, a draft standard the Business Valuation Board of the International Valuation Standards Council (IVSC) developed. The project, triggered by feedback received during the agenda consultation process the IVSC conducted in 2017 and 2018, has support from the IVSC’s Standards Review Board, Tangible Asset Board, and Financial Instruments Board. Nonfinancial liabilities include such items as deferred revenue, warranties, environmental liabilities, asset retirement obligations, certain contingent consideration obligations, loyalty programs, certain litigation reserves and contingencies, and certain indemnifications and guarantees. In addition to the draft standard, the exposure draft provides some additional insights on the process, information considered, and ultimate rationale for preliminary conclusions the boards reached. A final standard may be issued in mid-2019 (depending on the feedback received) and would have an effective date no earlier than Jan. 1, 2020. Please send comments to: comments@ivsc.org.
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