Final answer:
IAS 37 includes provisions related to employee benefits, but excludes provisions regarding financial instruments, long-lived assets like oil rigs, and insurance contracts, which are covered under other IFRS standards.
Step-by-step explanation:
The correct answer is A. Provisions related to employee benefits. IAS 37 Provisions, Contingent Liabilities and Contingent Assets sets out the accounting for provisions, contingent liabilities, and contingent assets. It does not cover those areas that are covered by other standards, such as employee benefits (IAS 19 Employee Benefits), which are included under the scope of IAS 37. The standard specifically excludes items like financial instruments that are covered under IFRS 9 Financial Instruments, long-lived assets, and insurance contracts which are dealt with under IFRS 4 Insurance Contracts.
The scope of IAS 37 is essentially concerned with timing and uncertainty of future events. Provisions must be recognized when a company has a present obligation resulting from a past event, it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. In the case of contingent liabilities and assets, they are not recognized but might be disclosed, depending on the likelihood of the event occurring.