The International Accounting Standards Board (IASB) has proposed narrow scope amendments to IAS 16, Property, Plant and Equipment. Comments are due by 19 October 2017.
The Exposure Draft, Property, Plant and Equipment—Proceeds before Intended Use (Proposed amendments to IAS 16) (Exposure Draft), proposes amendments that would prohibit entities from deducting sales proceeds from the cost of an item of property, plant and equipment while that asset is being made available for use. Instead, the company would recognise those sales proceeds and related costs in profit or loss.
The IASB intends these proposals to reduce diversity practice that has arisen in application of IAS 16.
The Exposure Draft is available on this link.
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