IAS 16Chapter 12Lesson 1
Transition provisions of amendments
Step 1 of 6Learning objectives
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A short, informative lesson: when IAS 16 is amended, each amendment specifies how to move from the old rule to the new one. What matters is knowing that these provisions exist and their logic (prospective application for asset exchanges, a deemed cost option for bearer plants, application to assets made ready from the earliest period presented for proceeds before intended use).
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Learning objectives
- Understand what the transition provisions of an amended standard are for.
- Identify that the main amendments to IAS 16 have their own transition provisions and recognise their general logic.
- Know where to look for the effective date of an amendment.