United States

In the Headlines: Restricting the Use of Revenue-Based Amortisation

May 19, 2014
From the Financial Reporting Network and the IFRS Institute

In the Headlines 14-08 summarizes a recent IASB amendment, Clarification of Acceptable Depreciation and Amortisation (Amendments to IAS 16 and IAS 38), which provides a rebuttable presumption that the use of revenue-based amortization methods for intangible assets is inappropriate for an entity that applies IFRS. The amendment is effective prospectively for annual periods beginning on or after January 1, 2016, and early application is permitted.

Read In the Headlines 14-08