IAS 16, Property, Plant and Equipment

Exchanges of similar items of property, plant, and equipment

• Exchanges to be recorded at fair value for similar assets.
• This principle is to be extended to previously recognised intangible assets, provided that fair value can be reliably measured. IAS 38.34-35 will be amended to emphasise reliable measurement. This type of transaction is envisaged to be rare.
• Revenue items will be dealt with under IAS 18 review at future meetings.

Items of property, plant, and equipment held for sale

• No changes are to be made to IAS 16 for this. They are to be treated in the same way as other items of PPE.
• Items will continue to be depreciated and tested for impairment. IAS 36.9(f) will be amended to include ceasing to use the asset as a trigger for impairment review.

Revaluation Group Proposals

• No changes proposed to IAS 16 for the Revaluation Group's comments.
• Timing of the Revaluation Group's meeting is such that it cannot feed into the Improvements Project, as their first meeting is in March.
• The Board recognises that the measurement basis is a major issue but this will not be solved as part of the Improvements Project.
• SIC 6 re capitalising costs is to be withdrawn.