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The International Financial Reporting Interpretations Committee (IFRIC).

Document Cited in Related
Vincent
PositionTechnical Briefing

The International Financial Reporting Interpretations Committee (IFRIC) has published draft interpretation D2, relating to alterations in decommissioning, restoration and similar liabilities. The proposed interpretation contains guidance on accounting for certain changes in decommissioning and restoration that are recognised both as part of the cost of an item of property, plant and equipment (in accordance with IAS16--Property, Plant and Equipment) and as a liability (in accordance with IAS37--Provisions, Contingent Liabilities and Contingent Assets). The main changes arise from the revision of estimated outflows of resources, embodying economic benefits and revisions to the current market-assessed discount rate. Under the proposed new interpretation, these two changes are accounted for in the same manner as the initial estimated cost--ie, amounts relating to the depreciation of the asset that would have been recognised to date are reflected in current period income or expense, while amounts relating to...

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