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 (Proposed Amendments to IAS 16) [ED]

Comment period ends on October 19, 2017

Proposed effective date:

The exposure draft does not contain a proposed effective date, which the IASB intends to decide on after the exposure. Nevertheless, the IASB has already concluded that earlier application would be permitted.

Next steps:

The IASB expects to issue the final IFRS Amendment (no date specified).

Last up­dated:

November 2018

Overview

The purpose of this project is to clarify the accounting for the net proceeds from selling any items produced while bringing an item of property, plant and equipment (PPE) into use.

The Interpretations Committee received a request to clarify the accounting for the net proceeds from selling any items produced while bringing an item of PPE to the location and condition necessary for it to be capable of operating in the manner intended by management. The submitter has asked whether the amount by which the net proceeds received exceed the costs of testing should be recognized in profit or loss or as a deduction from the cost of the PPE.

The Interpretations Committee added this item to its agenda and, after analysis of the issue, recommended that the Board propose a narrow-scope amendment to IAS 16 to prohibit the deduction of proceeds from selling items produced before an item of PPE is available for use from the cost of that PPE.

 

Other de­vel­op­ments

December 2017 

On December 18, 2017, the IASB staff updated the work plan to indicate that the IASB expects to issue the final IFRS Amendment (no date specified). 

September 2017

On September 22, 2017, the IASB staff updated the work plan to indicate that the IASB expects to review the Exposure Draft Feedback in December 2017.

July 2017

On July 13, 2017, the AcSB issued an Exposure Draft that corresponds to the IASB’s Exposure Draft on this topic. Stakeholders are encouraged to submit their comments by October 19, 2017.

June 2017

In June 2017, the IASB staff updated the work plan to indicate that the IASB expects to discuss the Exposure Draft feedback in Q4/2017.

On June 20, 2017, the IASB issued an Exposure Draft on proposed narrow‑scope amendments to IAS 16, Property, Plant and Equipment to reduce the diversity in the application of the Standard.

April 2017

On April 28, 2017, the IASB staff issued an updated Work Plan which indicates that the IASB expects to issue an Exposure Draft in respect of this project for public comment in June 2017.

March 2017

On March 23, 2017, the IASB staff issued an updated Work Plan which indicates that the IASB expects to publish an Exposure Draft in respect of this project for comment by September 2017.

December 2016

On December 15, 2016, the IASB staff updated the Work Plan in respect of this project to indicate that the IASB expects to publish an Exposure Draft for comment by June 2017.

November 2016

On November 18, 2016, the IASB staff updated the Work Plan in respect of this project to indicate that the IASB expects to issue an Exposure Draft before May 31, 2017.

October 2016

On October 20, 2016, the IASB staff added this new project to the Board’s Work Plan.

 

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.