Responses to IASB® Documents for Comment

IAS 16 Property, Plant and Equipment

Exposure Draft – Property, Plant and Equipment—Proceeds before Intended Use (Proposed amendments to IAS 16) – June 2017

On October 19, 2017, the AcSB submitted a comment letter responding to the IASB’s Exposure Draft issued in June 2017. The letter disagrees with the proposal because it would not provide entities with sufficient guidance to determine the costs related to the selling items produced before an asset is available for use. Several concerns are raised, including how the resulting profit margin may not be a meaningful measure for users to predict future profitability and cash flows. The AcSB strongly encourages the IASB to consider further developing this proposal in order to provide relevant information to users. Read the AcSB letter posted by the IASB.  

Exposure Draft – Agriculture: Bearer Plants (Proposed amendments to IAS 16 and IAS 41) – June 2013

On October 28, 2013, the AcSB submitted a comment letter responding to the IASB’s Exposure Draft issued in June 2013.  The letter supports the efforts to improve the accounting for bearer biological assets.  The letter recommends that the scope of the proposed amendments be expanded and provides some other input to enhance the quality of the amendments. Read the AcSB letter posted by the IASB.

Exposure Draft – Clarification of Acceptable Methods of Depreciation and Amortisation (Proposed amendments to IAS 16 and IAS 38) – December 2012

On March 22, 2013, the AcSB submitted a comment letter responding to the IASB’s Exposure Draft issued in December 2012. The letter supports the proposed amendments and agrees that there is a limited circumstance in which the use of a revenue-based method that is based on units sold rather than total expected revenue may be appropriate. As well, guidance should not be provided in the Basis for Conclusions. The letter also expresses concern that a reason was not provided as to why an amendment regarding the relevance of information about technical or commercial obsolescence of the product or service output was added. In addition, it queries why this amendment is only applicable to the diminishing balance method. Read the AcSB letter posted by the IASB.