EFRAG's draft comment letter on proposed amendments to IAS 16 and IAS 38 relating to depreciation and amortisation

14 December 2012

EFRAG published its draft comment letter to the IASB on its Exposure Draft, 'Clarification of Acceptable Methods of Depreciation and Amortisation (Proposed Amendments to IAS 16 and IAS 38)'. Comments are invited on the letter by 11 March, 2013.

EFRAG's letter is intended to contribute to the IASB’s due process and does not necessarily indicate the conclusions that would be reached by EFRAG in its capacity as advisor to the EC on endorsement of the definitive IFRS in the EU and EEA.

EFRAG supports the IASB’s efforts to clarify the current requirements regarding the use of revenue-based methods of depreciation and amortisation. However, EFRAG believes that the IASB should remove the seeming contradiction between the standard and the Basis for Conclusions by reflecting the reasoning – that there are circumstances where revenue might be an appropriate proxy for the use of an asset – presented in paragraphs BC3 to BC5 in the body of the standard.

Press release

Draft comment letter

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