The IASB discussed a proposed amendment to paragraph 62 in IAS 16 Property, Plant and Equipment and paragraph 98 in IAS 38 Intangibles relating to selecting an appropriate depreciation and/or amortisation method.
The amendment would clarify that a method of depreciation or amortisation based on the revenue expected to be generated from using the asset in an entity's business is not appropriate. This is because this method reflects a pattern of generation of economic benefits from operating the business (of which the asset is a part), rather than the consumption of the economic benefits embodied in the asset.
The Board tentatively decided to include the proposed amendment within the Annual Improvements to IFRSs 2011-2013 cycle.
Thirteen Board members supported this decision.