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EFRAG draft comment letter on acceptable methods of depreciation and amortisation

  • EFRAG (European Financial Reporting Advisory Group) (dk green) Image

14 Dec 2012

The European Financial Reporting Advisory Group (EFRAG) has issued a draft comment letter on the IASB's Exposure Draft ED/2012/5 'Clarification of Acceptable Methods of Depreciation and Amortisation (Proposed Amendments to IAS 16 and IAS 38)' which was published on 4 December 2012.

EFRAG supports efforts to clarify current requirements on using revenue-based methods of depreciation and amortisation. However, EFRAG noted a contradiction to be addressed by the IASB:

[W]e believe that the IASB should remove the seeming contradiction between the standard and the Basis for Conclusions by reflecting the reasoning — that there are circumstances where revenue might be an appropriate proxy for the use of an asset — presented in paragraphs BC3 to BC5 in the body of the standard.

Click for:

  • EFRAG press release with link to the draft comment letter (link to EFRAG website).
  • Our previous story on the Exposure Draft ED/2012/5 Clarification of Acceptable Methods of Depreciation and Amortisation (Proposed Amendments to IAS 16 and IAS 38).

Comments on the letter are invited by 11 March 2013.

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