IFRIC06 BV2009 - IFRIC 6 IFRIC Interpretation 6 Liabilities...

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IFRIC 6 IFRIC Interpretation 6 Liabilities arising from Participating in a Specific Market—Waste Electrical and Electronic Equipment IFRIC 6 Liabilities arising from Participating in a Specific Market—Waste Electrical and Electronic Equipment was developed by the International Financial Reporting Interpretations Committee and issued by the International Accounting Standards Board in September 2005. © IASCF 1
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IFRIC 6 C ONTENTS paragraphs IFRIC INTERPRETATION 6 LIABILITIES ARISING FROM PARTICIPATING IN A SPECIFIC MARKET— WASTE ELECTRICAL AND ELECTRONIC EQUIPMENT REFERENCES BACKGROUND 1–5 SCOPE 6–7 ISSUE 8 CONSENSUS 9 EFFECTIVE DATE 10 TRANSITION 11 BASIS FOR CONCLUSIONS 2 © IASCF
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IFRIC 6 IFRIC Interpretation 6 Liabilities arising from Participating in a Specific Market—Waste Electrical and Electronic Equipment (IFRIC 6) is set out in paragraphs 1–11. IFRIC 6 is accompanied by a Basis for Conclusions. The scope and authority of Interpretations are set out in paragraphs 2 and 7–17 of the Preface to International Financial Reporting Standards . © IASCF 3
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IFRIC 6 IFRIC Interpretation 6 Liabilities arising from Participating in a Specific Market—Waste Electrical and Electronic Equipment References IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors IAS 37 Provisions, Contingent Liabilities and Contingent Assets Background 1 Paragraph 17 of IAS 37 specifies that an obligating event is a past event that leads to a present obligation that an entity has no realistic alternative to settling. 2 Paragraph 19 of IAS 37 states that provisions are recognised only for ‘obligations arising from past events existing independently of an entity’s future actions’. 3 The European Union’s Directive on Waste Electrical and Electronic Equipment (WE&EE), which regulates the collection, treatment, recovery and environmentally sound disposal of waste equipment, has given rise to questions about when the liability for the decommissioning of WE&EE should be recognised. The Directive distinguishes between ‘new’ and ‘historical’ waste and between waste from private households and waste from sources other than private households. New waste relates to products sold after 13 August 2005. All household equipment sold before that date is deemed to give rise to historical waste for the purposes of the Directive. 4 The Directive states that the cost of waste management for historical household equipment 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 (the measurement period). The Directive states that each Member State shall establish a mechanism to have producers contribute to costs proportionately ‘e.g. in proportion to their respective share of the market by type of equipment.’ 5 Several terms used in the Interpretation such as ‘market share’ and ‘measurement period’ may be defined very
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IFRIC06 BV2009 - IFRIC 6 IFRIC Interpretation 6 Liabilities...

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