AcSB Response – Property, Plant and Equipment— Proceeds before Intended Use (Proposed amendments to IAS 16)
Oct 19, 2017
On October 19, 2017, the Accounting Standards Board (AcSB) submitted a comment letter responding to the IASB’s Exposure Draft issued in June 2017. The letter disagrees with the proposal because it would not provide entities with sufficient guidance to determine the costs related to the selling items produced before an asset is available for use.
Several concerns were raised, including how the resulting profit margin may not be a meaningful measure for users to predict future profitability and cash flows. The AcSB strongly encourages the IASB to consider further developing this proposal in order to provide relevant information to users.
Review the AcSB letter posted by the IASB.
