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IAS 37 — Obligating event in the light of the EU Directive on waste electrical and electronic equipment

Background

Directive 2002/96/EC of the European Parliament and of the Council of 27 January 2003 requires that from 13 August 2005 producers of electrical and electronic equipment must assume responsibility for proper disposal of such equipment when it has become waste.

The producers are responsible not only for ensuring that their products are handled and processed in an environmentally sound manner when they eventually become waste but also for financing the eventual disposal. Producers can meet that responsibility individually by posting financial guarantees or through a collective scheme whereby they share joint responsibility.

Waste electrical and electronic equipment (WEEE) includes:

  • large and small household appliances;
  • IT and telecommunications equipment;
  • consumer equipment;
  • lighting equipment;
  • electrical and electronic tools (with the exception of large-scale stationary industrial tools);
  • toys, leisure and sports equipment;
  • medical devices (with the exception of implanted and infected products);
  • monitoring and control instruments;
  • automatic dispensers.

The accounting issue is what is the obligating event that would require a producer to accrue a provision for its obligation for proper disposal of WEEE.

 

Current status of the project

This project has been completed. IFRIC 6 Liabilities Arising from Participating in a Specific Market – Waste Electrical and Electronic Equipment was issued on 1 September 2005.

 

Project milestones

DateDevelopmentComments
November 2004 Draft Interpretation D10 Liabilities arising from Participating in a Specific Market – Waste Electrical and Electronic Equipment published Comment deadline 11 February 2005
1 September 2005 IFRIC 6 Liabilities Arising from Participating in a Specific Market – Waste Electrical and Electronic Equipment issued Effective for annual periods beginning on or after 1 December 2005

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.