EFRAG draft comment letter on acceptable methods of depreciation and amortisation
14 Dec 2012
The European Financial Reporting Advisory Group (EFRAG) has issued a draft comment letter on the IASB's Exposure Draft ED/2012/5 'Clarification of Acceptable Methods of Depreciation and Amortisation (Proposed Amendments to IAS 16 and IAS 38)' which was published on 4 December 2012.
EFRAG supports efforts to clarify current requirements on using revenue-based methods of depreciation and amortisation. However, EFRAG noted a contradiction to be addressed by the IASB:
[W]e believe that the IASB should remove the seeming contradiction between the standard and the Basis for Conclusions by reflecting the reasoning — that there are circumstances where revenue might be an appropriate proxy for the use of an asset — presented in paragraphs BC3 to BC5 in the body of the standard.
Click for:
- EFRAG press release with link to the draft comment letter (link to EFRAG website).
- Our previous story on the Exposure Draft ED/2012/5 Clarification of Acceptable Methods of Depreciation and Amortisation (Proposed Amendments to IAS 16 and IAS 38).
Comments on the letter are invited by 11 March 2013.
