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: