Property, Plant and Equipment: Proceeds before Intended Use - IASB

Date recorded:

At its meeting on October 18-19, 2016, the IASB tentatively decided to propose amendments to IAS 16. The amendments would prohibit the deduction from the cost of an item of PPE the proceeds from selling items produced while making that item of PPE available for use.

Additionally, the Board tentatively decided to: (i) require an entity to apply the proposed amendments only to items of PPE made available for use from the beginning of the earliest comparative period when first applying the amendments; and (ii) not to provide transition relief for first-time adopters.

The Board will consider the comment period and due process steps taken on the proposed narrow-scope amendment to IAS 16 at a future meeting.

Review the IASB Update on the IASB's Web site.

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