Annual Improvements 2006-2007

Date recorded:

IAS 38 Intangible Assets - Advertising and promotional expenditures

The Board considered a proposal referred to it from the IFRIC that IAS 38 should be amended to clarify at what point training and advertising and promotion expenditure should be recognised as an expense. The issue arises from an apparent conflict in IAS 38 paragraphs 68-70. (For a detailed explanation of this issue, please see IAS Plus Notes from the March 2007 IFRIC Meeting.)

It was evident that the drafting proposed by the IASB staff did not adequately clarify the issue. IASB members who participated in the IFRIC's discussions explained what the IFRIC was trying to achieve, and the IFRIC's intention had a large degree of support around the Board table.

The Board referred the issue back to the staff, asking them to clarify the principles that the IFRIC had identified and to make drafting changes that reflected those principles.

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