SOCPA participated in the decision of the International Accounting Standards Explanations Committee of the International Accounting Standards Board regarding training costs associated with contracts with clients, in which the committee decided that the requirements of the current standards were sufficient and there was no need to issue an explanation.
In its response to the International Committee’s decision, SOCPA believes that the requirements of IAS 38 “Intangible Assets” related to training costs are written in the context of general training for the facility’s employees, and it did not take into account the training costs paid by the client related to the contract with the customer subject to the requirements of the International Financial Reporting Standard. No. 15 “Revenue from contracts with clients”, as IAS 38 should have been amended when the IFRS was issued, so that all costs required to fulfill the contract were dealt with in a consistent manner, including training costs that the client pays to the facility’s employees to enable them to meet the requirements of Contract.