The IFRS Interpretations Committee has published two tentative decision drafts regarding inquiries about the recognition of intangible assets resulting from climate-related expenditure, and about assessing indicators of hyperinflationary economies. In both projects, the Committee preliminarily concluded that there is no need to establish requirements in existing standards as they are sufficient to address these inquiries.
The Saudi Organization for Chartered and Professional Accountants (SOCPA), represented by its Accounting Standards Council, commented on these two tentative agenda decisions, confirming its agreement with the International Committee regarding the adequacy of the requirements in International Accounting Standard 29 for assessing indicators of hyperinflationary economies. As for the tentative agenda decision related to the recognition of intangible assets resulting from climate-related expenditure, SOCPA indicated that it would be appropriate for this topic to be included within the existing project of the International Accounting Standards Board to develop the intangible assets standard, in light of the growing interest in accounting for climate impacts. The minimum guidance on this topic might be to include in the standard several illustrative examples that address the criteria related to the possibility of capitalizing expenditures.
To view SOCPA's comments on the tentative agenda decision:
- Regarding the inquiry about the recognition of intangible assets resulting from climate-related expenditure, click
here.
- Regarding assessing indicators of hyperinflationary economies, click
here.