Recently, the International Accounting Standards Board (IASB) has issued a new version of Property, Plant and EquipmentProceeds before Intended Use, which made amendments to IAS 16 (AASB 116) Property, Plant and Equipment. These amendments were finalised after consulting a range of stakeholders. However, a group of investors have approached the IASB expressing their concern over these amendments and have asked the board to review its decision because of the implications these have on extractive and petrochemical industries.

Provide critical analysis of the current requirements and proposed amendments to the accounting standard.Analysis should include:

• (a) Explain in what ways these proposed amendments to IAS 16 Para 17 will change the accounting for such sale proceeds before an asset's intended use.
• (b) Critical analysis of the current requirements of IAS 16 Para 17. Note: Your critical analysis should include relative merits and demerits of continuing with the existing requirements of IAS 16 Para 17. Therefore, you need provide both for and against evidence-based arguments.
• (c) Critical analysis of the proposed amendments to IAS 16 para 17? Note: Your critical analysis should include relative merits and demerits of introducing proposed amendments to IAS 16 para 17. Therefore, you need provide both for and against evidence-based arguments.
• (d) Advice on whether or not your accounting form should support the proposed amendments to IAS 16 Para 17.

Resources

Must use these two papers to develop the analysis and discussion.

The IASB 2019 paper provides an overview of the final decision made by IASB regarding amendments to IAS16/AASB 116 including transition, effective date and due process.As this paper includes a number of issues regarding the proposed amendments, we have kept its scope limited Summary of the amendments (paragraphs 5-7) and Transition issues for entities that are already applying IFRS Standards (paragraphs 8-15), in order to manage length and complexity of the assignment task.

https://cdn.ifrs.org/-/media/feature/meetings/2019/october/iasb/ap12a-implementation-matters.pdf

2018 paperprovides an overview of stakeholder feedback and staff analysis. So, this document will be useful to develop a rigorous critical analysis of the current requirements and the proposed amendments.

https://cdn.ifrs.org/-/media/feature/meetings/2018/november/iasb/ap12b-ias16.pdf