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IFRIC 6 on waste management costs

  • IFRIC (International Financial Reporting Interpretations Committee) (blue) Image

01 Sep 2005

The International Financial Reporting Interpretations Committee (IFRIC) has issued IFRIC Interpretation 6 'Liabilities Arising from Participating in a Specific Market - Waste Electrical and Electronic Equipment'.

The issue that IFRIC 6 addresses is if an entity has an obligation to contribute to the costs of disposing of waste equipment based on its share of the market in a measurement period, what is the event that gives rise to a liability:

  • the manufacture or sale of the equipment?
  • participation in the market during the measurement period?
  • the incurrence of costs in the performance of waste management activities?

IFRIC 6 concludes that the event that triggers liability recognition is participation in the market during the measurement period. The measurement period is a period in which market shares are determined for the purposes of allocating waste management costs.

IFRIC 6 is effective for financial periods beginning on or after 1 December 2005. Earlier application is encouraged. Click for:


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