Background
BC16A Before the 2020 amendments, paragraph 17(e) specified that directly attributable costs included the costs of testing whether an asset was functioning properly, after deducting the net proceeds from selling items produced while bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. The Board received a request asking whether:
(a) the proceeds specified in paragraph 17(e) related only to items produced while testing; and
(b) an entity was required to deduct from the cost of an item of property, plant and equipment any such proceeds that exceeded the costs of testing.
BC16B The Board's research indicated that different entities had applied the requirements in paragraph 17(e) differently. Some entities deducted only proceeds from selling items produced while testing; others deducted the proceeds of all sales until an asset was in the location and condition necessary for it to be capable of operatin
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