UITF Abstract 45 Liabilities Arising from Participating in a Specific Market
Issued February 2007. Effective accounting periods ending on or after 22 June 2007.
UITF Abstract 45 has been superseded by FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland for accounting periods beginning on or after 1 January 2015. For more information visit:
Synopsis
Abstract 45 is equivalent to IFRIC Interpretation 6.
The EU’s Directive on Waste Electrical and Electronic Equipment has given rise to questions about whether a liability for decommissioning costs associated with such equipment should be recognised.
The Directive requires that where such electrical waste arises from sales to private households prior to 13 August 2005, waste management costs should be borne by producers of that type of equipment that are in the market during a period to be specified in the applicable legislation of each Member state.
Producers are required to contribute to costs in proportion to their respective share of the market by type of equipment.
Abstract 45 provides guidance on which event gives rise to an obligating event and therefore the creation of a provision in relation to waste management costs.
The consensus concludes that the relevant event is participation in the market during the specified period.
Last updated 21 June 2015