[Paragraphs BC35A–BC35F were added as a consequence of amendments to IAS 16 by Improvements to IFRSs issued in May 2008. At the same time, the Board also amended paragraph 6 by replacing the term ‘net selling price’ in the definition of ‘recoverable amount’ with ‘fair value less costs to sell’ for consistency with the wording used in IFRS 5 Non‑current Assets Held for Sale and Discontinued Operations and IAS 36.]
BC35A The Board identified that, in some industries, entities are in the business of renting and subsequently selling the same assets.
BC35B The Board noted that the Standard prohibits classification as revenue of gains arising from derecognition of items of property, plant and equipment. The Board also noted that paragraph BC35 states the reason for this is ‘users of financial statements would consider these gains and the proceeds from an entity’s sale of goods in the course of its ordinary activities differently in their evaluation of an entity’s past r
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