Property, Plant and Equipment: Proceeds before Intended Use

Background

The amendments related to this project, Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16) were published by the IASB in May 2020. These amendments are effective for annual reporting periods beginning on or after 1 January 2022, with early application permitted.

The amendments prohibit an entity from deducting from the cost of property, plant and equipment, any proceeds received 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 recognises the proceeds from selling such items and related cost, in profit or loss.


Contact Us

UKEB
8th Floor
125 London Wall
London

Email: UKEndorsementBoard@endorsement-board.uk

Stay up to date

Subscribe to our newsletters and alerts by emailing contact@endorsement-board.uk and putting SUBSCRIBE in the Subject.

Your personal information submitted via this email will be processed in accordance with our Privacy Policy.

If you would like to unsubscribe, please email us