The objective of IAS 37 is to ensure that adequate recognition criteria and measurement bases are accurately applied to the provisions, contingent liabilities, and the contingent assets and that necessary information is disclosed in the notes to the financial statements which would enable the users to understand their nature, timing and the amount.IAS 37 defines and also specifies the accounting for and disclosure of the provisions, of all the contingent liabilities, and all the contingent assets. A provision here is described as a liability of uncertain timing or amount. The liability may be a legal obligation or a constructive obligation.