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Annual Improvements

IASB meeting summaries


 IASB April 2012


 

 

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.

Date: 4/16/2012