On 12 December 2013, the International Accounting Standards Board issued Annual Improvements to IFRSs 2010—2012 Cycle. The amendments have an effective date of 1 July 2014, but earlier adoption is permitted.
The objective of this amendment was to clarify the requirements for the revaluation method in IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets to address concerns about the calculation of the accumulated depreciation or amortisation at the date of the revaluation.
The amendment addresses the issue in paragraph 35 of IAS 16 and paragraph 80 of IAS 38 by clarifying that:
Clarification of Acceptable Methods of Depreciation and Amortisation (Amendments to IAS 16 and IAS 38)