Deloitte comment letter on tentative agenda decision on IAS 16 and IAS 38 — Variable payments for an asset

Published on: 19 Jan 2016

We have commented on the IFRS Interpretations Committee's publication in the November IFRIC Update of the tentative decision not to take onto the Committee's agenda the accounting for variable payments to be made for the purchase of an item of property, plant and equipment or an intangible asset outside of a business combination.

We disagree with the with the IFRS Interpretations Committee's decision not to add this item onto its agenda; the tentative agenda rejection could be read as expressing two acceptable analyses (that there is, or is not, a liability prior to the occurrence of the activity triggering payment), divergent practices exist and will continue. We believe that this issue should be referred to the IASB for consideration.

Download the full comment letter below.


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