IFRIC 5 Decommissioning, Restoration and Environmental Rehabilitation Funds
Published December 2004. Effective 1 January 2006.
Contents
Free to view
- Synopsis (including link to unaccompanied version of IFRIC 5)
- IFRSs referred to
Financial Reporting Faculty members only
Looking for real life examples?
Financial Reporting Faculty members get free access to Company Reporting’s CR service. Company Reporting are a leading research and benchmarking service on IFRS reporting practices.
Faculty membership gives you access to a range of other resources, including the hidden premium content on this page.
Synopsis
IFRIC 5 applies to those entities which establish and make contributions to decommissioning funds. Such funds are generally administered by separate trustees who invest contributions made by the entities in a range of assets and then reimburse the entities in the future for decommissioning costs paid.
IFRIC 5 addresses how a contributor should account for:
- its interest in a decommissioning fund, and
- the obligation to pay extra contributions.
The interpretation requires that IAS 27, SIC 12, IAS 28 and IAS 31 are applied in deciding how to account for an interest in a decommissioning fund. If none of these applies, then the future obligation and associated reimbursement are accounted for according to IAS 37.
Obligations to pay extra contributions should be accounted for in accordance with IAS 37.
Which version of the interpretation?
'Which version of the interpretation?' is only available to members of the Financial Reporting Faculty. Please note that to access electronic versions of IFRS through the links in these standard trackers you need to have first logged into eIFRS.
| Annual period starts | Effective version of standard | Notes on amendments |
|---|---|---|
| On or after 1 January 2018 | IFRIC 5 2021 Required Standards | Includes amendment 1 |
Recent amendments
Full access to details of all the amendments is only available to Financial Reporting Faculty members. Find out how to join the faculty.
-
1. IFRS 9 amendment to IFRIC 5
-
Effective for annual periods beginning on or after 1 January 2018. Earlier application is permitted.
IFRS 9 amends IFRIC 5 to replace reference to IAS 39 with reference to IFRS 9.
IFRSs referred to by IFRIC 5
- IFRS 9 Financial Instruments
- IFRS 10 Consolidated Financial Statements
- IFRS 11 Joint Arrangements
- IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
- IAS 28 Investments in Associates and Joint Ventures
- IAS 37 Provisions, Contingent Liabilities and Contingent Assets
This page was last updated 22 January 2021.