BC77A The IFRS Interpretations Committee reported to the Board that practice differed in calculating the accumulated depreciation for an item of property, plant and equipment that is measured using the revaluation method in cases in which the residual value, the useful life or the depreciation method has been re-estimated before a revaluation.

BC77B The reasons for making the change are further explained in paragraphs BC25A-BC25G of IAS 16.

BC77C The Board noted that the issue in paragraphs BC25A-BC25G of IAS 16 regarding accumulated depreciation upon revaluation could also occur when revaluing an intangible asset under IAS 38, because both IAS 16 and IAS 38 have the same requirements for accumulated depreciation/amortisation when revaluing items of property, plant and equipment/intangible assets. Differences in the revaluation models for items of property, plant and equipment and intangible assets do not result in different models for restating accumulated depreciation/amortisation. For example, IAS 38 requires that the fair value of an intangible asset is measured by reference to an active market. Otherwise, the revaluation model cannot be applied. However, IAS 38 requires fair value measurement by reference to an active market only for the carrying amount of an intangible asset in contrast to its gross carrying amount.

BC77D Consequently, the Board decided to amend paragraph 80(a) to state that: