Deloitte comment letter on tentative agenda decision on IAS 38 — Goods acquired for promotional activities
We have commented on the IFRS Interpretations Committee's publication in the June 2017 IFRIC Update of the tentative decision not to take onto the Committee's agenda the request for clarification on the accounting for goods distributed as part of promotional activities.
We agree with the IFRS Interpretations Committee's decision not to add this item onto its agenda for the reasons set out in the tentative agenda decision. However, we do not agree with the assertion in the tentative agenda decision that the transaction described is within the scope of IAS 38 and, therefore, that such items should necessarily be recognized as an expense when the entity has a right to access the goods.
Download the full comment letter below.