IFRS/IAS Summary
IAS-15 - Information reflecting the effect of changing prices (Withdrawn Dec 2003)
| IAS 15 has been withdrawn At its meeting in December 2003, the IASB has decided to withdraw IAS 15 with immediate effect. |
Objective of IAS 15
The objective of IAS 15 is to specify disclosures reflecting the effects of changing prices on the measurements used in the determination of an enterprise's results of operations and its financial position.
Applicability
IAS 15 applies to enterprises whose levels of revenue, profit, assets or employment are significant in the economic environment in which they operate. When both parent and consolidated financial statements are presented, the information specified by IAS 15 need be presented only on a consolidated basis. [IAS 15.3]
Method for Reflecting Changing Prices
The enterprise must select one of two broad accounting methods for reflecting the effects of changing prices: [IAS 15.8]
- General purchasing power approach. Restate financial statements for changes in the general price level.
- Current cost approach. Measure balance sheet items at replacement cost. IAS 15 allows a variety of methods of adjusting income under the current cost approach.
What Should Be Disclosed
The following items should be disclosed, at a minimum, based on the chosen method for reflecting the effects of changing prices: [IAS 15.21-23]
- Adjustment to depreciation
- Adjustment to cost of sales
- Adjustments relating to monetary items
- The overall effect on net income of the above three items
- Current cost of property, plant and equipment and of inventories, if the current cost approach is used
- Description of the methods used to compute the above adjustments
The disclosures can be made on a supplementary basis or in the primary financial statements. [IAS 15.24]
Note: Please note that these summaries are only for reference purposes and are not a substitute for the entire IFRS/IAS. Kindly read the whole text of IFRS/IAS before consulting these summaries.
Summaries are courtesy of Deloitte.
More Summaries
- IAS-01 - Presentation of Financial Statements (Revised Dec 2003)
- IAS-02 - Inventories (Revised Dec 2003)
- IAS-07 - Cash Flow Statements
- IAS-08 - Net Profit or Loss for The Period, Fundamental Errors and Changes in Accounting Policies (Revised)
- IAS-10 - Events after the Balance Sheet date (Revised Dec 2003)
- IAS-11 - Construction Contracts
- IAS-12 - Income Taxes
- IAS-14 - Segment Reporting
- IAS-15 - Information reflecting the effect of changing prices (Withdrawn Dec 2003)
- IAS-16 - Property, Plant and Equipment (Revised Dec 2003)
- IAS-17 - Leases (Revised Dec 2003)
- IAS-18 - Revenue
- IAS-19 - Employee Benefits
- IAS-20 - Accounting for Government grants
- IAS-21 - The effects of changes in foreign exchange rates (Revised Dec 2003)
- IAS-22 - Business Combinations
- IAS-23 - Borrowing Costs
- IAS-24 - Related Party Disclosures (Revised Dec 2003)
- IAS-26 - Accounting and reporting by defined benefit plans
- IAS-27 - Consolidated Financial Statements and Accounting for Investment in Subsidiaries (Revised Dec 2003)
- IAS-28 - Accounting for Investment in Associates (Revised Dec 2003)
- IAS-29 - Financial Reporting in Hyperinflationary Economies
- IAS-30 - Disclosures in Fin. Statements of Banks in Similar Fin. Institutions
- IAS-31 - Financial Reporting of Interests in Joint Ventures (Revised Dec 2003)
- IAS-32 - Financial Instruments: Disclosure and Presentation (Revised Dec 2003)
- IAS-33 - Earnings Per Share (Revised Dec 2003)
- IAS-34 - Interim Financial Reporting
- IAS-38 - Intangible Assets
- IAS-39 - Financial Instruments: Recognition and Measurement (Revised Dec 2003)
- IAS-40 - Investment Property (Revised Dec 2003)
- IAS-41 - Agriculture
