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Exposure Draft and comment letters [Dec 2012]


 

IASB publishes proposals for amendments to IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets: Clarification of Acceptable Methods of Depreciation and Amortisation


On 4 December 2012 the International Accounting Standards Board (IASB) published for public comment an Exposure Draft of proposed amendments to IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets.

IAS 16 and IAS 38  both establish the principle for the basis of depreciation and amortisation as being the expected pattern of consumption of the future economic benefits of an asset. The objective of the proposed amendments is to ensure that preparers do not use revenue-based methods to calculate charges for the depreciation or amortisation of items of property, plant and equipment or intangible assets. This is because a revenue-based method reflects a pattern of economic benefits being generated from the asset, rather than the expected pattern of consumption of the future economic benefits embodied in the asset.

The issue originated from a submission to the IFRS Interpretations Committee. As a result, the Interpretations Committee recommended that the IASB should amend IAS 16 and IAS 38.

Comment letters
 

The commenting period closed on 2 April 2013.

View the comment letters.

 

Due process documents
Exposure Draft: Clarification of Acceptable Methods of Depreciation and Amortisation [PDF]
Exposé-sondage: Clarifications sur les modes d’amortissement acceptables (projet de modification d’IAS 16 et d’IAS 38) (French) [PDF]
 公開草案: 減価償却及び償却の許容される方法の明確化 (Japanese) [PDF]