• Service: Audit, Financial Statement Audit, Financial Reporting & Accounting Standards, Accounting Advisory Services, International Financial Reporting Standards (IFRS)
  • Type: Regulatory update
  • Date: 5/12/2012

IFRS In the Headlines

IFRS In the Headlines
In the Headlines (formerly IFRS Briefing Sheets) provide a timely update on International Financial Reporting Standards (IFRS) developments.

Proposal to ban revenue-based amortisation (2012/19) 

The IASB proposes to amend IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets to state explicitly that revenue-based methods of amortisation (and depreciation) cannot be used. Under revenue-based methods, the profile of amortisation expense reflects the profile of revenues generated through use of the asset.
The exposure draft does not propose an effective date but indicates that early adoption would be allowed. Retrospective application is proposed. Comments are due to the IASB by 2 April 2013.