Wednesday 12 March 2014
The IASB responded to a request to address a perceived inconsistency in the classification requirements for servicing equipment.
The IASB decided to clarify that items such as spare parts, stand-by equipment and servicing equipment shall be recognised as property, plant and equipment when they meet the definition of property, plant and equipment. If they do not meet this definition they are classified as inventory.
The IASB tentatively decided to finalised the proposed amendment
The Interpretations Committee recommended that the IASB finalise the proposed amendment with the wording more simplified
The IASB tentatively decided to include the proposed amendment withing the next Improvements to IFRSs Exposure Draft
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