This part relates to a complete explanation of IFRS 15 Revenue from contracts with customers in respect of Engineering & Construction contracts, see https://annualreporting.info/revenue-from-engineering-construction-contracts/.
The requirements in IAS 37 for onerous contracts apply to all contracts in the scope of IFRS 15. IFRS 15 states that entities that are required to recognise a liability for expected losses on contracts under IAS 37 will continue to be required to do so. IAS 37 requirements for onerous contracts are described in IAS 37 66 – 69.
The wording of the requirements in IAS 37 does not exactly mirror the equivalent requirements in IAS 11 which states, “when it is probable that total contract costs will exceed total contract revenue, the expected loss shall be recognised as an expense immediately”. While these standards use different terminology, the timing of recognition of an onerous contract provision under IAS 37 and the related expense will likely be consistent with when an expected loss would be recognised under IAS 11.