Income Provision for Trade Payables

[Pavlos_Greece]

Dear all,
I have some trade payables that are unmoved for 5 years and I was thinking to perform a positive provision (not write off ) eg

DR Asset (will mapped with Trade payables)
CR Provision Income for Trade Payables

But I read in EY IFRS manual (IFRS 9):
By contrast, the rules for derecognition of liabilities, like the provisions of IAS 32 for the identification of instruments as financial liabilities (see Chapter 42), focus more on legal obligations than on economic substance – or, as the IASB would doubtless argue, they are based on the view that the economic substance of whether an entity has a liability to a third party is ultimately dictated by the legal rights and obligations that exist between them.

In my case there I can not obtain legal evidence about the fact that no one will ask from me these amounts.
IFRS 9 refers to legal evidence in case of de-recognition. In my case I would like not to de-recognize but create a provision income

What do you think, should I proceed with the provision income? or its too aggressive?

Thank you!!!

[DJP]

There is no such thing as "positive provisions" for financial liabilities.

You first need to understand why your creditors are not claiming payment for these trade payables. You can only derecognise them if settled or legally released.

[Marek Muc]

The entry you proposed seems odd! The statute of limitations, as per your local law, may soon apply. Once it does, the right to legal action for debt recovery expires and you'll be able to derecognise the liability and recognise a gain in P/L. BTW, why the creditors aren't actively seeking payment?