PwC's Feedback on IAS 16 Amendment: Proceeds Before Intended Use

This document presents PricewaterhouseCoopers' (PwC) response to the Exposure Draft ED/2017/04 regarding amendments to IAS 16 concerning proceeds from property, plant, and equipment before intended use. The report summarizes the views of PwC member firms, expressing agreement with the proposed improvements while suggesting clarifications to the wording of certain amendments, specifically concerning the determination of related costs of producing test items charged to the income statement. The response includes a detailed analysis of the IASB's proposal, supporting the amendment to IAS 16 and proposing a refined wording for paragraph 20A to enhance clarity regarding incremental costs.

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pwc
Mr Henry Rees
Director of Implementation Activities
International Accounting Standards Board
30 Cannon Street
London
EC4M 6XH
17 October 2017
Dear Sir
Exposure draft ED/2o17/o4: Property, Plant and Equipment — Proceeds before Intended
Use
We are responding to your invitation to comment on the Exposure Draft ED/2o17/o4 on behalf of
PricewaterhouseCoopers.
Following consultationvith members of the PricewaterhouseCoopers network of firms, this response
summarises the views of member firms who commented on the Exposure Draft.
“PricewaterhouseCoopers” refers to the network of member firms of PricewaterhouseCoopers
International Limited, each of which is a separate and independent legal entity.
We agree with the proposed improvements. Our responses to the specific questions posed in the
invitation to comment are attached as Appendix 1 to this letter. They include some suggestions to
clarify the wording of several of the proposed amendments.
If you have any questions in relation to this letter please do not hesitate to contact Henry Daubeney,
PwC Head of Reporting and Chief Accountant (+ 207 804 2160) , or Mary Dolson (+ 44 207 212
5697).
Yours sincerely
PricewaterhouseCoopers
PricewaterhouseCoopers International Limited, 1 Embankment Place, London WC’2N 6RH
T: [phone], F: [phone]
PricewaterhouseCoopers International Limited is registered in England number 35m0073.
Registered office: t Embankment Place, London WC2N 6RH.

pwc
Appendix r
Detailed responses to the specific questions in the Exposure Draft
Question: Do you agree with the IASB’s proposal? Why or why not? If not, what
alternative would you propose and why?
We support the proposal to amend LAS i6 as described in the Exposure Draft. It is not clear how the
related costs of producing the test items charged to income statement is determined. We suggest
paragraph 2OAto read as follows: “<...>, and the incremental costs of producing those items, <...>“.
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