SOCPA Approves the IASB’s Amendments on IAS No.16

SOCPA approved the amendments made by IASB to IAS 16 "Property, Plant and Equipment", prohibiting 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, a company will recognize such sales proceeds and related cost in profit or loss.

It should be noted that amendment was initially based on a proposal submitted by SOCPA to IASB. The amendment was consistent with SOCPA's recommendation on the standard which was submitted previously thereby.

These amendments can be viewed by clicking here.