IASB Exposure Draft – Proposed Amendments to IAS 16
Jun 20, 2017
On June 20, 2017, the International Accounting Standards Board (IASB) issued proposed narrow‑scope amendments to IAS 16 "Property, Plant and Equipment" to reduce the diversity in the application of the Standard.
IAS 16 establishes principles for recognizing and measuring items of property, plant and equipment as assets.
The proposed amendments would prohibit deducting sales proceeds from the cost of an item of property, plant and equipment while that asset is being made available for use. Instead, the company would recognise those sales proceeds and related costs in profit or loss.
The proposed amendments are put forward following discussions of the IFRS Interpretations Committee on accounting for proceeds and costs of testing.
This Exposure Draft ED/2017/4 Property, Plant and Equipment—Proceeds before Intended Use (Proposed amendments to IAS 16) is open for comment until October 19, 2017.
Review the press release and Exposure Draft on the IASB's website.
