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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

The IASB first discussed this issue in October 2016 after it had been on and off the Intepretations Committee's agenda since July 2014. An exposure draft ED/2017/4 Property, Plant and Equipment — Proceeds before Intended Use (Proposed amendments to IAS 16) was published on 20 June 2017 with comments requested by 19 October 2017. The next project milestone is now an IFRS amendment, however, no expected date has been provided yet.


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


Correction list for hyphenation

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