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25/06/2020 - EFRAG requests comments on its Draft Endorsement Advice on Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16)

​​EFRAG is consulting on both its assessmentof Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16) against the technical criteria in the EU and on its assessment of whether the Amendments are conducive to the European public good. Comments are requested by 7 September 2020.


​EFRAG has issued a Draft Endorsement Advice letter and a separate invitation to comment relating to the endorsement for use in the EU of Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16) ('the Amendments').

The objective of the Amendments is to prohibit entities from deducting from the cost of property, plant and equipment amounts received from selling items produced while the entity is preparing the asset for its intended use. Instead, an entity will recognise such sales proceeds and related cost in profit or loss.

The Amendments become effective for annual periods beginning on or after 1 January 2022, with earlier application permitted.

EFRAG's overall preliminary assessment is that the Amendments satisfy the criteria for endorsement for use in the EU and therefore recommends its endorsement.

EFRAG is seeking comments on all aspects of its analyses supporting its preliminary conclusions.

Comments are requested by 7 September 2020. You can comment on EFRAG’s Draft Endorsement Advice by clicking on the ‘Comment publication’ link below.

The Draft Endorsement Advice can be found here and the invitation to comment h​​ere.​​

EFRAG has also updated its Endorsement Status Report, which can be downloaded here​ on EFRAG's web​ page.