• 2023 Issued Standards – IFRIC 1
  The IFRIC Interpretations are available in the 2023 Issued Standards, which include all amendments issued up to and including 1 January 2023.

Registration is required to access the free version of the Issued Standards. This version does not include additional documents that accompany the full standards (such as illustrative examples, implementation guidance and basis for conclusions).

IFRIC 1 applies where an entity has previously included decommissioning or restoration costs within the cost of an item of property, plant or equipment, and created a corresponding provision. Such a provision should be discounted to present values using a current market-based discount rate.

IFRIC 1 addresses changes in the value of the provision which may arise from:

• changes in the discount rate;
• revised estimates of the timing and amount of costs.

If an entity applies the cost model to property, plant and equipment, these changes in the value of the provision are required to be capitalised as part of the cost of the asset and depreciated.

If an entity applies the revaluation model to property, plant and equipment, the changes in value of the provision must be recognised as other comprehensive income and accumulated within the revaluation surplus.