IFRS Update : IAS 16 - Property, Plant and Equipment

• The amendment clarifies that spare parts and servicing equipment are classified as property, plant and equipment rather than inventory when they meet the definition of property, plant and equipment.
• The previous wording of IAS 16 indicated that servicing equipment should be classified as inventory, even if it was used for more than one period. Following the amendment, this equipment used for more than one period is classified as property, plant and equipment.
• Applies retrospectively for annual periods beginning on or after 1 January 2013. Early adoption is permitted.