Responses to IASB Documents for Comment

IAS 38 Intangible Assets

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.