This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice (http://www2.deloitte.com/ca/en/legal/cookies.html) for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

Property, Plant and Equipment: Proceeds before Intended Use – International Accounting Standards Board

Date recorded:

At its meeting on June 19, 2019, the Board continued its discussion on the Exposure Draft. The proposed amendments to IAS 16 would prohibit an entity from deducting from the cost of an item of property, plant and equipment (PPE) any proceeds from selling items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. The Board tentatively decided: (i) to amend IAS 16 to require an entity to identify and measure the cost of items produced before an item of PPE is available for use applying the measurement requirements in paragraphs 9–33 of IAS 2, Inventories. (ii) to develop neither presentation nor disclosure requirements for the sale of items that are part of an entity’s ordinary activities; (iii) for the sale of items that are not part of an entity’s ordinary activities (and to which an entity does not apply IFRS 15 and IAS 2), to require an entity to: (a) disclose separately the sales proceeds and their related production costs recognized in profit or loss; and (b) specify the line item(s) in the statement of profit or loss and other comprehensive income that include(s) the sales proceeds and the production costs; and (iv) not to amend IFRS 6, Exploration for and Evaluation of Mineral Resources, or IFRIC 20, Stripping Costs in the Production Phase of a Surface Mine, as a consequence of these proposed amendments. The Board will discuss due process steps at a future meeting.

Review the IASB Update and podcast on the Board's Web site.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.