The International Accounting Standards Board (Board) has released an exposure draft proposing to amend IAS 16 Property, Plant and Equipment. The exposure draft was published by the Institute of Chartered Accountants (ICAI) in their official website.
The amendments would prohibit deducting from the cost of an item of property, plant and equipment any proceeds from selling items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity would recognise those sales proceeds in profit or loss.
ASB invites comments on the Exposure Draft from the public. Those who want to comment can submit the same to the Secretary, Accounting standards Board, ICAI, ICAI Bhavan, Indraprastha Marg, New Delhi. Those who want to express their views through online can either logon to http://www.icai.org/comments/asb/ or can send e-mail to commentsasb@icai.in before August 31st 2017.
Read the full text of the Exposure draft below.
