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IAS 16 — Proceeds before intended use


This project looks into the accounting for any proceeds from selling items produced while bringing an item of property, plant and equipment to the location and condition necessary for it to be capable of operating in the manner intended by management.

The issue was initially raised with the IFRS Interpretations Committee that had origianally intended to develop an interpretation of IAS 16 Property, Plant and Equipment to deal with it. However, during the course of discussions the Committee concluded that a narrow-scope amendment to IAS 16 would be a better solution.


Current status of the project

This project has been completed. The IASB issued Property, Plant and Equipment — Proceeds before Intended Use (Amendments to IAS 16) on 14 May 2020.


Project milestones

Date Development Comments
July 2014 IFRS Interpretation Committee tentatively decides not to address the issue Decision rectified in November 2014
May 2015 IFRS Interpretation Committee tentatively decides to develop an interpretation on the issue
March 2016 IFRS Interpretation Committee decides that the issue can best be addressed through a narrow-scope amendment
October 2016 Issue first discussed by the IASB
June 2017 ED/2017/4 Property, Plant and Equipment — Proceeds before Intended Use (Proposed amendments to IAS 16) Comments requested by 19 October 2017
14 May 2020 Property, Plant and Equipment — Proceeds before Intended Use (Amendments to IAS 16) issued amendments are effective for annual reporting periods beginning on or after 1 January 2022


Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.