In April 2001 the International Accounting Standards Board (Board) adopted IAS 16 Property, Plant and Equipment, which had originally been issued by the International Accounting Standards Committee in December 1993. IAS 16 Property, Plant and Equipment replaced IAS 16 Accounting for Property, Plant and Equipment (issued in March 1982). IAS 16 that was issued in March 1982 also replaced some parts in IAS 4 Depreciation Accounting that was approved in November 1975.
In December 2003 the Board issued a revised IAS 16 as part of its initial agenda of technical projects. The revised Standard also replaced the guidance in three Interpretations (SIC‑6 Costs of Modifying Existing Software, SIC‑14 Property, Plant and Equipment—Compensation for the Impairment or Loss of Items and SIC‑23 Property, Plant and Equipment—Major Inspection or Overhaul Costs).
In May 2014 the Board amended IAS 16 to prohibit the use of a revenue‑based depreciation method.
In June 2014 the Board amended the scope of IAS 16 to include bearer plants related to agricultural activity.
In May 2017, when IFRS 17 Insurance Contracts was issued, it amended the subsequent measurement requirements in IAS 16 by permitting entities to elect to measure owner-occupied properties in specific circumstances as if they were investment properties measured at fair value through profit or loss applying IAS 40 Investment Property.
In May 2020, the Board issued Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16) which prohibit a company from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, a company will recognise such sales proceeds and related cost in profit or loss.
Other Standards have made minor consequential amendments to IAS 16. They include IFRS 13 Fair Value Measurement (issued May 2011), Annual Improvements to IFRSs 2009–2011 Cycle (issued May 2012), Annual Improvements to IFRSs 2010–2012 Cycle (issued December 2013), IFRS 15 Revenue from Contracts with Customers (issued May 2014), IFRS 16 Leases (issued January 2016) and Amendments to References to the Conceptual Framework in IFRS Standards (issued March 2018).