IASB issues narrow-scope amendments to standards
FINANCIAL REPORTING INSIGHTS |
The International Accounting Standards Board (IASB) recently issued narrow-scope amendments to the following standards:
- International Accounting Standard (IAS) 16, Property, Plant and Equipment, to prohibit a company from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, such sales proceeds and related cost should be recognized in profit or loss.
- IAS 37, Provisions, Contingent Liabilities and Contingent Assets, to specify which costs a company includes when assessing whether a contract will be loss-making.
- International Financial Reporting Standard 3, Business Combinations, to update a reference to the Conceptual Framework for Financial Reporting without changing the accounting requirements for business combinations.
As part of the IASB’s annual improvements, minor amendments also were made to other standards to clarify wording or correct minor consequences, oversights or conflicts between requirements.
All amendments are effective January 1, 2022.