The International Accounting Standards Board (IASB) has published an exposure draft of proposed amendments to IAS 16: Property, Plant and Equipment and IAS 38: Intangible Assets for public consultation.
Both IAS 16 and IAS 38 establish principles for the basis of depreciation and amortisation. In each case, this is defined as being "the expected pattern of consumption of the future economic benefits of an asset".
The objective of the proposed amendments is to ensure that preparers do not use revenue-based methods to calculate charges for the depreciation or amortisation of items of property, plant and equipment or intangible assets.
The drafts are open for comment until 2 April 2013.
International Accounting Standards Board