IAS 16 — Proceeds before intended use
Background
This project looks into the accounting for any proceeds from selling items produced while bringing an item of property, plant and equipment to the location and condition necessary for it to be capable of operating in the manner intended by management.
The issue was initially raised with the IFRS Interpretations Committee that had origianally intended to develop an interpretation of IAS 16 Property, Plant and Equipment to deal with it. However, during the course of discussions the Committee concluded that a narrow-scope amendment to IAS 16 would be a better solution.
Current status of the project
Project milestones
Date | Development | Comments |
---|---|---|
July 2014 | IFRS Interpretation Committee tentatively decides not to address the issue | Decision rectified in November 2014 |
May 2015 | IFRS Interpretation Committee tentatively decides to develop an interpretation on the issue | |
March 2016 | IFRS Interpretation Committee decides that the issue can best be addressed through a narrow-scope amendment | |
October 2016 | Issue first discussed by the IASB | |
June 2017 | ED/2017/4 Property, Plant and Equipment — Proceeds before Intended Use (Proposed amendments to IAS 16) | Comments requested by 19 October 2017 |
14 May 2020 | Property, Plant and Equipment — Proceeds before Intended Use (Amendments to IAS 16) issued | amendments are effective for annual reporting periods beginning on or after 1 January 2022 |