Hi All

From what I can see on IAS 37, planned future expenditure should be excluded from recognition in a provision for future expenses.

We have a Feb financial year end. We are in the process of buying a building, but the transfer / moving will only happen in April. We need to commission a generator and redo some of the electrics and the network cables before we can move offices. There will also be other relocation costs that we have committed to, prior to moving (Fibre, telephones, biometrics and security).

I understand the liability is defined as a present obligation resulting from past events.

If we have signed off the purchase order for the generator and electrical work, but it will only be installed in the next financial year, does it qualify as a present obligation? Technically we could still cancel it, although it is a requirement before we move offices. Would we be able to treat everything we have already ordered, although it is not supplied as yet the same way, and put the provision for future expenses into this year, or would it be best to note it as a contingent liability instead?