IASB proposes narrow-scope amendments to IAS 16
On 20 June 2017, the IASB published an exposure draft proposing narrow-scope amendments to IAS 16 – Property, Plant and Equipment.
Keywords: Mazars, Thailand, IFRS, IASB, IAS 16
22 August 2017
The proposed changes would ensure consistent application of IAS 16. They have been published following the IFRS Interpretations Committee’s discussions regarding recognition of sales proceeds and the costs of testing.
The amendments propose that the proceeds from selling items produced during an asset’s testing phase (i.e. before it is operating in the manner intended by management) should no longer be recognised as a deduction from the cost of the asset, but instead in profit or loss.
The comment period for the proposed amendments to IAS 16 is open until 19 October 2017.
The exposure draft ED/2017/4 Property, Plant and Equipment – Proceeds before Intended Use is available on the IASB’s website .