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IAS 38 — Accounting for sales costs

Date recorded:

The submission asked for guidance how to account for initial selling and marketing costs incurred during construction of real estate. After IFRIC 15 Agreements for the Construction of Real Estate was issued, many real estate projects are now in the scope of IAS 18 Revenue, which contains no guidance on this issue.

The staff recommended not adding the issue to the agenda.

After brief discussion, the IFRIC agreed with the staff recommendation. It was agreed that the final guidance should not emphasise specific Standards for analogising, but should make clear that there is sufficient guidance available on which costs are not eligible for capitalising.

The chairman closed this part of the meeting noting that during the recent months the quality of the submissions had declined and that some of them seemed not clear and/or did not go through an appropriate thought process. The chairman expressed hope that this would change again in the future.

Correction list for hyphenation

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