The Accounting Standards Council (ASC) has submitted a comment letter dated 19 October 2017 to the International Accounting Standards Board (IASB) on ED/2017/4 Property, Plant and Equipment — Proceeds before Intended Use (Proposed amendments to IAS 16).

The ASC has raised its concern to IASB in considering the following implications that could arise from the proposed amendments made:

Different accounting for non-saleable items produced while making an asset available for use

Judgement involved in allocation of costs, and

Specific considerations for extractive industry.

More details on the comments can be viewed from the ASC website.

Source: ASC, 27 October 2017