The Accounting Standards Board (AcSB) is participating in the International Accounting Standards Board’s (IASB) project to amend IAS 16 Property, Plant and Equipment.
The objective of this project is to reduce the diversity in application of IAS 16 by prohibiting the deduction from the cost of an item of property, plant and equipment any proceeds from selling items produced before the asset is available for use. Instead, the entity would recognize the proceeds from selling such items, and related production costs, in profit or loss.
The AcSB’s due process includes ensuring that Canadian entities’ financial reporting needs are considered by the IASB and issuing the AcSB’s own exposure draft on each IASB proposal. Subject to the responses to the AcSB’s exposure draft on whether the IASB’s proposals are appropriate for application in Canada, the AcSB expects that the amendments will be incorporated into Canadian GAAP in accordance with the AcSB’s strategy of adopting IFRS® Standards for publicly accountable enterprises.