Clarification of Acceptable Methods of Depreciation and Amortization - IDG

Date recorded:

At its meeting on December 9, 2014, the Group members of the AcSB’s IFRS Discussion Group (IDG) were asked whether they are aware of other industry sectors or circumstances in which revenue-based amortization is used in practice. No comments were raised with respect to identifying other industry sectors being affected. Group members were also not aware of circumstances in which intangible assets are expressed as a measure of revenue such that revenue-based amortization would be appropriate. In discussing the rebuttable presumption, Group members agreed that if the appropriate correlation analysis cannot be made, revenue-based amortization is precluded and an alternative method of amortization is required.

The Group recommended no further action to the AcSB at this time but commented that it may be worthwhile to have a future discussion on this topic if application issues start to arise in this area.

Review the executive summary on the AcSB's website.

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