SIC-14
Historical
Property, Plant and Equipment–Compensation for the Impairment or Loss of Items
Addressed accounting for compensation received for impairment or loss of PPE items, requiring treatment as separate events rather than netting. Withdrawn in 2009.
Historical Reference
SIC-14 was withdrawn in January 2009 when the IASB issued an amendment to IAS 16 Property, Plant and Equipment, which incorporated the 'separate events' principle for compensation directly into the standard.
This page is retained for historical and comparative reference. Entities should refer to the current standard that superseded this interpretation for authoritative guidance.
Current Standard
IAS 16 Property, Plant and Equipment 1
What SIC-14 Addressed (Historical)
What SIC-14 addressed
SIC-14 addressed the accounting treatment of compensation received from third parties for the impairment or loss of property, plant and equipment. It clarified whether such compensation should be netted against the carrying amount of the impaired or lost asset or recognised as a separate item.
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The Conclusion It Reached (Historical)
The conclusion it reached
SIC-14 concluded that compensation from third parties for the impairment or loss of PPE items should be treated as a separate event. The compensation receivable should be recognised as an asset when it becomes virtually certain that the compensation will be received, and it should not be netted against the carrying amount of the impaired or lost asset.
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Where This Guidance Lives Today
Where this guidance lives today
Superseded byIAS 16 Property, Plant and Equipment
Why withdrawnThe 2009 amendment incorporated the 'separate events' principle directly into IAS 16
Current statusWithdrawn
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Glossary
Impairment
A decrease in the recoverable amount of an asset below its carrying amount, resulting in a loss that must be recognised in profit or loss.
Separate events
The principle that the impairment or loss of an asset and the receipt of related compensation are treated as distinct accounting events that should not be netted against each other.
Financial statement key
BS Balance sheet
IS Income statement
SE Statement of changes in equity
OCI Other comprehensive income
SCF Statement of cash flows
History & Development
Jan-1998
In January 1998 the Standing Interpretations Committee issued SIC-14 Property, Plant and Equipment–Compensation for the Impairment or Loss of Items.
Apr-2001
In April 2001 the International Accounting Standards Board adopted SIC-14.
Minor consequential amendment to SIC-14
Jan-2009
In January 2009 the Board issued an amendment to IAS 16 which superseded SIC-14.
Superseded by amendment to IAS 16