In 2000, the Urgent Issues Task Force has published Abstract 23 which clarifies para 108 of Financial Reporting Standard FRS 15 on tangible fixed assets. This paragraph deals with the prior period adjustment when FRS 15 is first applied.
The new abstract deals with the position when different components of a fixed asset are treated separately, as allowed by the standard. The prior period adjustment should be limited to effects of introducing the standard. There should be no change to the estimate of useful economic life, nor to the residual value.
[2000]