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  • IFRS 8 — Operating Segments
    IFRS 8 defines an operating segment as follows An operating segment is a component of an entity IFRS 8 2 that engages in business activities from which it may earn revenues and incur expenses including revenues and expenses relating to transactions with other components of the same entity whose operating results are reviewed regularly by the entity s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance and for which discrete financial information is available Reportable segments IFRS 8 requires an entity to report financial and descriptive information about its reportable segments Reportable segments are operating segments or aggregations of operating segments that meet specified criteria IFRS 8 13 its reported revenue from both external customers and intersegment sales or transfers is 10 per cent or more of the combined revenue internal and external of all operating segments or the absolute measure of its reported profit or loss is 10 per cent or more of the greater in absolute amount of i the combined reported profit of all operating segments that did not report a loss and ii the combined reported loss of all operating segments that reported a loss or its assets are 10 per cent or more of the combined assets of all operating segments Two or more operating segments may be aggregated into a single operating segment if aggregation is consistent with the core principles of the the standard the segments have similar economic characteristics and are similar in various prescribed respects IFRS 8 12 If the total external revenue reported by operating segments constitutes less than 75 per cent of the entity s revenue additional operating segments must be identified as reportable segments even if they do not meet the quantitative thresholds set out above until at least 75 per cent of the entity s revenue is included in reportable segments IFRS 8 15 Disclosure requirements Required disclosures include general information about how the entity identified its operating segments and the types of products and services from which each operating segment derives its revenues IFRS 8 22 judgements made by management in applying the aggregation criteria to allow two or more operating segments to be aggregated IFRS 8 22 aa information about the profit or loss for each reportable segment including certain specified revenues and expenses such as revenue from external customers and from transactions with other segments interest revenue and expense depreciation and amortisation income tax expense or income and material non cash items IFRS 8 21 b and 23 a measure of total assets and total liabilities for each reportable segment and the amount of investments in associates and joint ventures and the amounts of additions to certain non current assets capital expenditure IFRS 8 23 24 an explanation of the measurements of segment profit or loss segment assets and segment liabilities including certain minimum disclosures e g how transactions between segments are measured the nature of measurement differences between segment information and other

    Original URL path: http://www.iasplus.com/en/standards/ifrs/ifrs8 (2016-02-10)
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  • IFRS 10 — Consolidated Financial Statements
    its involvement with the investee IFRS 10 17 When assessing whether an investor controls an investee an investor with decision making rights determines whether it acts as principal or as an agent of other parties A number of factors are considered in making this assessment For instance the remuneration of the decision maker is considered in determining whether it is an agent IFRS 10 B58 IFRS 10 B60 Accounting requirements Preparation of consolidated financial statements A parent prepares consolidated financial statements using uniform accounting policies for like transactions and other events in similar circumstances IFRS 10 19 However a parent need not present consolidated financial statements if it meets all of the following conditions IFRS 10 4 a it is a wholly owned subsidiary or is a partially owned subsidiary of another entity and its other owners including those not otherwise entitled to vote have been informed about and do not object to the parent not presenting consolidated financial statements its debt or equity instruments are not traded in a public market a domestic or foreign stock exchange or an over the counter market including local and regional markets it did not file nor is it in the process of filing its financial statements with a securities commission or other regulatory organisation for the purpose of issuing any class of instruments in a public market and its ultimate or any intermediate parent of the parent produces financial statements available for public use that comply with IFRSs in which subsidiaries are consolidated or are measured at fair value through profit or loss in accordance with IFRS 10 Fair value measurement clause added by Investment Entities Applying the Consolidation Exception Amendments to IFRS 10 IFRS 12 and IAS 28 amendments effective 1 January 2016 Investment entities are prohibited from consolidating particular subsidiaries see further information below Furthermore post employment benefit plans or other long term employee benefit plans to which IAS 19 Employee Benefits applies are not required to apply the requirements of IFRS 10 IFRS 10 4B Consolidation procedures Consolidated financial statements IFRS 10 B86 combine like items of assets liabilities equity income expenses and cash flows of the parent with those of its subsidiaries offset eliminate the carrying amount of the parent s investment in each subsidiary and the parent s portion of equity of each subsidiary IFRS 3 Business Combinations explains how to account for any related goodwill eliminate in full intragroup assets and liabilities equity income expenses and cash flows relating to transactions between entities of the group profits or losses resulting from intragroup transactions that are recognised in assets such as inventory and fixed assets are eliminated in full A reporting entity includes the income and expenses of a subsidiary in the consolidated financial statements from the date it gains control until the date when the reporting entity ceases to control the subsidiary Income and expenses of the subsidiary are based on the amounts of the assets and liabilities recognised in the consolidated financial statements at the acquisition date IFRS 10 B88 The parent and subsidiaries are required to have the same reporting dates or consolidation based on additional financial information prepared by subsidiary unless impracticable Where impracticable the most recent financial statements of the subsidiary are used adjusted for the effects of significant transactions or events between the reporting dates of the subsidiary and consolidated financial statements The difference between the date of the subsidiary s financial statements and that of the consolidated financial statements shall be no more than three months IFRS 10 B92 IFRS 10 B93 Non controlling interests NCIs A parent presents non controlling interests in its consolidated statement of financial position within equity separately from the equity of the owners of the parent IFRS 10 22 A reporting entity attributes the profit or loss and each component of other comprehensive income to the owners of the parent and to the non controlling interests The proportion allocated to the parent and non controlling interests are determined on the basis of present ownership interests IFRS 10 B94 IFRS 10 B89 The reporting entity also attributes total comprehensive income to the owners of the parent and to the non controlling interests even if this results in the non controlling interests having a deficit balance IFRS 10 B94 Changes in ownership interests Changes in a parent s ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary are equity transactions i e transactions with owners in their capacity as owners When the proportion of the equity held by non controlling interests changes the carrying amounts of the controlling and non controlling interests area adjusted to reflect the changes in their relative interests in the subsidiary Any difference between the amount by which the non controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity and attributed to the owners of the parent IFRS 10 23 IFRS 10 B96 If a parent loses control of a subsidiary the parent IFRS 10 25 derecognises the assets and liabilities of the former subsidiary from the consolidated statement of financial position recognises any investment retained in the former subsidiary when control is lost and subsequently accounts for it and for any amounts owed by or to the former subsidiary in accordance with relevant IFRSs That retained interest is remeasured and the remeasured value is regarded as the fair value on initial recognition of a financial asset in accordance with IFRS 9 Financial Instruments or when appropriate the cost on initial recognition of an investment in an associate or joint venture recognises the gain or loss associated with the loss of control attributable to the former controlling interest If a parent loses control of a subsidiary that does not contain a business in a transaction with an associate or a joint venture gains or losses resulting from those transactions are recognised in the parent s profit or loss only to the extent of the unrelated

    Original URL path: http://www.iasplus.com/en/standards/ifrs/ifrs10 (2016-02-10)
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  • IFRS 11 — Joint Arrangements
    whereby the parties that have joint control of the arrangement have rights to the assets and obligations for the liabilities relating to the arrangement Those parties are called joint operators IFRS 11 15 A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement Those parties are called joint venturers IFRS 11 16 Classifying joint arrangements The classification of a joint arrangement as a joint operation or a joint venture depends upon the rights and obligations of the parties to the arrangement An entity determines the type of joint arrangement in which it is involved by considering the structure and form of the arrangement the terms agreed by the parties in the contractual arrangement and other facts and circumstances IFRS 11 6 IFRS 11 14 IFRS 11 17 Regardless of the purpose structure or form of the arrangement the classification of joint arrangements depends upon the parties rights and obligations arising from the arrangement IFRS 11 B14 IFRS 11 B15 A joint arrangement in which the assets and liabilities relating to the arrangement are held in a separate vehicle can be either a joint venture or a joint operation IFRS 11 B19 A joint arrangement that is not structured through a separate vehicle is a joint operation In such cases the contractual arrangement establishes the parties rights to the assets and obligations for the liabilities relating to the arrangement and the parties rights to the corresponding revenues and obligations for the corresponding expenses IFRS 11 B16 Financial statements of parties to a joint arrangement Joint operations A joint operator recognises in relation to its interest in a joint operation IFRS 11 20 its assets including its share of any assets held jointly its liabilities including its share of any liabilities incurred jointly its revenue from the sale of its share of the output of the joint operation its share of the revenue from the sale of the output by the joint operation and its expenses including its share of any expenses incurred jointly A joint operator accounts for the assets liabilities revenues and expenses relating to its involvement in a joint operation in accordance with the relevant IFRSs IFRS 11 21 The acquirer of an interest in a joint operation in which the activity constitutes a business as defined in IFRS 3 Business Combinations is required to apply all of the principles on business combinations accounting in IFRS 3 and other IFRSs with the exception of those principles that conflict with the guidance in IFRS 11 IFRS 11 21A These requirements apply both to the initial acquisition of an interest in a joint operation and the acquisition of an additional interest in a joint operation in the latter case previously held interests are not remeasured IFRS 11 B33C Note The requirements above were introduced by Accounting for Acquisitions of Interests in Joint Operations which applies to annual periods beginning on or after 1 January 2016

    Original URL path: http://www.iasplus.com/en/standards/ifrs/ifrs11 (2016-02-10)
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  • IFRS 12 — Disclosure of Interests in Other Entities
    loss presents the disclosures relating to investment entities required by IFRS 12 IFRS 12 6 Added by Investment Entities Applying the Consolidation Exception Amendments to IFRS 10 IFRS 12 and IAS 28 amendments effective 1 January 2016 Key definitions IFRS 12 Appendix A Interest in another entity Refers to contractual and non contractual involvement that exposes an entity to variability of returns from the performance of the other entity An interest in another entity can be evidenced by but is not limited to the holding of equity or debt instruments as well as other forms of involvement such as the provision of funding liquidity support credit enhancement and guarantees It includes the means by which an entity has control or joint control of or significant influence over another entity An entity does not necessarily have an interest in another entity solely because of a typical customer supplier relationship Structured entity An entity that has been designed so that voting or similar rights are not the dominant factor in deciding who controls the entity such as when any voting rights relate to administrative tasks only and the relevant activities are directed by means of contractual arrangements Disclosures required Important note The summary of disclosures that follows is a high level summary of the main requirements of IFRS 12 It does not list every specific disclosure required by the standard but instead highlights the broad objectives categories and nature of the disclosures required IFRS 12 lists specific examples and additional disclosures which further expand upon the disclosure objectives and includes other guidance on the disclosures required Accordingly readers should not consider this to be a comprehensive or complete listing of the disclosure requirements of IFRS 12 Significant judgements and assumptions An entity discloses information about significant judgements and assumptions it has made and changes in those judgements and assumptions in determining IFRS 12 7 that it controls another entity that it has joint control of an arrangement or significant influence over another entity the type of joint arrangement i e joint operation or joint venture when the arrangement has been structured through a separate vehicle Interests in subsidiaries An entity shall disclose information that enables users of its consolidated financial statements to IFRS 12 10 understand the composition of the group understand the interest that non controlling interests have in the group s activities and cash flows evaluate the nature and extent of significant restrictions on its ability to access or use assets and settle liabilities of the group evaluate the nature of and changes in the risks associated with its interests in consolidated structured entities evaluate the consequences of changes in its ownership interest in a subsidiary that do not result in a loss of control evaluate the consequences of losing control of a subsidiary during the reporting period Interests in unconsolidated subsidiaries Note The investment entity consolidation exemption referred to in this section was introduced by Investment Entities issued on 31 October 2012 and effective for annual periods beginning on

    Original URL path: http://www.iasplus.com/en/standards/ifrs/ifrs12 (2016-02-10)
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  • IFRS 13 — Fair Value Measurement
    inputs Level 3 inputs Level 3 inputs inputs are unobservable inputs for the asset or liability IFRS 13 86 Unobservable inputs are used to measure fair value to the extent that relevant observable inputs are not available thereby allowing for situations in which there is little if any market activity for the asset or liability at the measurement date An entity develops unobservable inputs using the best information available in the circumstances which might include the entity s own data taking into account all information about market participant assumptions that is reasonably available IFRS 13 87 89 Measurement of fair value Overview of fair value measurement approach The objective of a fair value measurement is to estimate the price at which an orderly transaction to sell the asset or to transfer the liability would take place between market participants at the measurement date under current market conditions A fair value measurement requires an entity to determine all of the following IFRS 13 B2 the particular asset or liability that is the subject of the measurement consistently with its unit of account for a non financial asset the valuation premise that is appropriate for the measurement consistently with its highest and best use the principal or most advantageous market for the asset or liability the valuation technique s appropriate for the measurement considering the availability of data with which to develop inputs that represent the assumptions that market participants would use when pricing the asset or liability and the level of the fair value hierarchy within which the inputs are categorised Guidance on measurement IFRS 13 provides the guidance on the measurement of fair value including the following An entity takes into account the characteristics of the asset or liability being measured that a market participant would take into account when pricing the asset or liability at measurement date e g the condition and location of the asset and any restrictions on the sale and use of the asset IFRS 13 11 Fair value measurement assumes an orderly transaction between market participants at the measurement date under current market conditions IFRS 13 15 Fair value measurement assumes a transaction taking place in the principal market for the asset or liability or in the absence of a principal market the most advantageous market for the asset or liability IFRS 13 24 A fair value measurement of a non financial asset takes into account its highest and best use IFRS 13 27 A fair value measurement of a financial or non financial liability or an entity s own equity instruments assumes it is transferred to a market participant at the measurement date without settlement extinguishment or cancellation at the measurement date IFRS 13 34 The fair value of a liability reflects non performance risk the risk the entity will not fulfil an obligation including an entity s own credit risk and assuming the same non performance risk before and after the transfer of the liability IFRS 13 42 An optional exception applies for certain financial assets and financial liabilities with offsetting positions in market risks or counterparty credit risk provided conditions are met additional disclosure is required IFRS 13 48 IFRS 13 96 Valuation techniques An entity uses valuation techniques appropriate in the circumstances and for which sufficient data are available to measure fair value maximising the use of relevant observable inputs and minimising the use of unobservable inputs IFRS 13 61 IFRS 13 67 The objective of using a valuation technique is to estimate the price at which an orderly transaction to sell the asset or to transfer the liability would take place between market participants and the measurement date under current market conditions Three widely used valuation techniques are IFRS 13 62 market approach uses prices and other relevant information generated by market transactions involving identical or comparable similar assets liabilities or a group of assets and liabilities e g a business cost approach reflects the amount that would be required currently to replace the service capacity of an asset current replacement cost income approach converts future amounts cash flows or income and expenses to a single current discounted amount reflecting current market expectations about those future amounts In some cases a single valuation technique will be appropriate whereas in others multiple valuation techniques will be appropriate IFRS 13 63 Disclosure Disclosure objective IFRS 13 requires an entity to disclose information that helps users of its financial statements assess both of the following IFRS 13 91 for assets and liabilities that are measured at fair value on a recurring or non recurring basis in the statement of financial position after initial recognition the valuation techniques and inputs used to develop those measurements for fair value measurements using significant unobservable inputs Level 3 the effect of the measurements on profit or loss or other comprehensive income for the period Disclosure exemptions The disclosure requirements are not required for IFRS 13 7 plan assets measured at fair value in accordance with IAS 19 Employee Benefits retirement benefit plan investments measured at fair value in accordance with IAS 26 Accounting and Reporting by Retirement Benefit Plans assets for which recoverable amount is fair value less costs of disposal in accordance with IAS 36 Impairment of Assets Identification of classes Where disclosures are required to be provided for each class of asset or liability an entity determines appropriate classes on the basis of the nature characteristics and risks of the asset or liability and the level of the fair value hierarchy within which the fair value measurement is categorised IFRS 13 94 Determining appropriate classes of assets and liabilities for which disclosures about fair value measurements should be provided requires judgement A class of assets and liabilities will often require greater disaggregation than the line items presented in the statement of financial position The number of classes may need to be greater for fair value measurements categorised within Level 3 Some disclosures are differentiated on whether the measurements are Recurring fair value measurements fair value

    Original URL path: http://www.iasplus.com/en/standards/ifrs/ifrs13 (2016-02-10)
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  • IFRS 14 — Regulatory Deferral Accounts
    board if that body is required by statute or regulation to set rates both in the interest of customers and to ensure the overall financial viability of the entity Regulatory deferral account balance The balance of any expense or income account that would not be recognised as an asset or a liability in accordance with other Standards but that qualifies for deferral because it is included or is expected to be included by the rate regulator in establishing the rate s that can be charged to customers Accounting policies for regulatory deferral account balances IFRS 14 provides an exemption from paragraph 11 of IAS 8 Accounting Policies Changes in Accounting Estimates and Errors when an entity determines its accounting policies for regulatory deferral account balances IFRS 14 9 Paragraph 11 of IAS 8 requires an entity to consider the requirements of IFRSs dealing with similar matters and the requirements of the Conceptual Framework when setting its accounting policies The effect of the exemption is that eligible entities can continue to apply the accounting policies used for regulatory deferral account balances under the basis of accounting used immediately before adopting IFRS previous GAAP when applying IFRSs subject to the presentation requirements of IFRS 14 IFRS 14 11 Entities are permitted to change their accounting policies for regulatory deferral account balances in accordance with IAS 8 but only if the change makes the financial statements more relevant and no less reliable or more reliable and not less relevant to the economic decision making needs of users of the entity s financial statements However an entity is not permitted to change accounting policies to start to recognise regulatory deferral account balances IFRS 14 13 Interaction with other Standards The requirements of other IFRSs are required to be applied to regulatory deferral account balances subject to specific exceptions exemptions and additional requirements contained in IFRS 14 IFRS 14 16 These are briefly summarised below IFRS 14 B7 B28 IAS 10 Events After the Reporting Period The requirements of IAS 10 are applied when determining which events after the end of the reporting period should be taken into account in the recognition and measurement of regulatory deferral account balances IAS 12 Income Taxes Deferred tax assets and liabilities arising from regulatory deferral account balances are presented separately from total deferred tax amounts and movements in those deferred tax balances are presented separately from tax expense income IAS 33 Earnings Per Share Entities applying IFRS 14 are required to present an additional basic and diluted earnings per share that excludes the impacts of the net movement in regulatory deferral account balances IAS 36 Impairment of Assets Regulatory deferral account balances are included in the carrying amount of any relevant cash generating unit CGU and are treated in the same way as other assets and liabilities where an impairment loss arises IFRS 3 Business Combinations The entity s accounting policies for regulatory deferral account balances are used in applying the acquisition method which can result in the

    Original URL path: http://www.iasplus.com/en/standards/ifrs/ifrs14 (2016-02-10)
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  • IFRS 15 — Revenue from Contracts with Customers
    Step 2 Identify the performance obligations in the contract At the inception of the contract the entity should assess the goods or services that have been promised to the customer and identify as a performance obligation IFRS 15 22 a good or service or bundle of goods or services that is distinct or a series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer A series of distinct goods or services is transferred to the customer in the same pattern if both of the following criteria are met IFRS 15 23 each distinct good or service in the series that the entity promises to transfer consecutively to the customer would be a performance obligation that is satisfied over time see below and a single method of measuring progress would be used to measure the entity s progress towards complete satisfaction of the performance obligation to transfer each distinct good or service in the series to the customer A good or service is distinct if both of the following criteria are met IFRS 15 27 the customer can benefit from the good or services on its own or in conjunction with other readily available resources and the entity s promise to transfer the good or service to the customer is separately idenitifable from other promises in the contract Factors for consideration as to whether a promise to transfer the good or service to the customer is separately identifiable include but are not limited to IFRS 15 29 the entity does not provide a significant service of integrating the good or service with other goods or services promised in the contract the good or service does not significantly modify or customise another good or service promised in the contract the good or service is not highly interrelated with or highly dependent on other goods or services promised in the contract Step 3 Determine the transaction price The transaction price is the amount to which an entity expects to be entitled in exchange for the transfer of goods and services When making this determination an entity will consider past customary business practices IFRS 15 47 Where a contract contains elements of variable consideration the entity will estimate the amount of variable consideration to which it will be entitled under the contract IFRS 15 50 Variable consideration can arise for example as a result of discounts rebates refunds credits price concessions incentives performance bonuses penalties or other similar items Variable consideration is also present if an entity s right to consideration is contingent on the occurrence of a future event IFRS 15 51 The standard deals with the uncertainty relating to variable consideration by limiting the amount of variable consideration that can be recognised Specifically variable consideration is only included in the transaction price if and to the extent that it is highly probable that its inclusion will not result in a significant revenue reversal in the future when the uncertainty has been subsequently resolved IFRS 15 56 However a different more restrictive approach is applied in respect of sales or usage based royalty revenue arising from licences of intellectual property Such revenue is recognised only when the underlying sales or usage occur IFRS 15 B63 Step 4 Allocate the transaction price to the performance obligations in the contracts Where a contract has multiple performance obligations an entity will allocate the transaction price to the performance obligations in the contract by reference to their relative standalone selling prices IFRS 15 74 If a standalone selling price is not directly observable the entity will need to estimate it IFRS 15 suggests various methods that might be used including IFRS 15 79 Adjusted market assessment approach Expected cost plus a margin approach Residual approach only permissible in limited circumstances Any overall discount compared to the aggregate of standalone selling prices is allocated between performance obligations on a relative standalone selling price basis In certain circumstances it may be appropriate to allocate such a discount to some but not all of the performance obligations IFRS 15 81 Where consideration is paid in advance or in arrears the entity will need to consider whether the contract includes a significant financing arrangement and if so adjust for the time value of money IFRS 15 60 A practical expedient is available where the interval between transfer of the promised goods or services and payment by the customer is expected to be less than 12 months IFRS 15 63 Step 5 Recognise revenue when or as the entity satisfies a performance obligation Revenue is recognised as control is passed either over time or at a point in time IFRS 15 32 Control of an asset is defined as the ability to direct the use of and obtain substantially all of the remaining benefits from the asset This includes the ability to prevent others from directing the use of and obtaining the benefits from the asset The benefits related to the asset are the potential cash flows that may be obtained directly or indirectly These include but are not limited to IFRS 15 31 33 using the asset to produce goods or provide services using the asset to enhance the value of other assets using the asset to settle liabilities or to reduce expenses selling or exchanging the asset pledging the asset to secure a loan and holding the asset An entity recognises revenue over time if one of the following criteria is met IFRS 15 35 the customer simultaneously receives and consumes all of the benefits provided by the entity as the entity performs the entity s performance creates or enhances an asset that the customer controls as the asset is created or the entity s performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date If an entity does not satisfy its performance obligation over time it satisfies it at a

    Original URL path: http://www.iasplus.com/en/standards/ifrs/ifrs15 (2016-02-10)
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  • IAS 2 — Inventories
    an expense including any write down to net realisable value It also provides guidance on the cost formulas that are used to assign costs to inventories Scope Inventories include assets held for sale in the ordinary course of business finished goods assets in the production process for sale in the ordinary course of business work in process and materials and supplies that are consumed in production raw materials IAS 2 6 However IAS 2 excludes certain inventories from its scope IAS 2 2 work in process arising under construction contracts see IAS 11 Construction Contracts financial instruments see IAS 39 Financial Instruments Recognition and Measurement biological assets related to agricultural activity and agricultural produce at the point of harvest see IAS 41 Agriculture Also while the following are within the scope of the standard IAS 2 does not apply to the measurement of inventories held by IAS 2 3 producers of agricultural and forest products agricultural produce after harvest and minerals and mineral products to the extent that they are measured at net realisable value above or below cost in accordance with well established practices in those industries When such inventories are measured at net realisable value changes in that value are recognised in profit or loss in the period of the change commodity brokers and dealers who measure their inventories at fair value less costs to sell When such inventories are measured at fair value less costs to sell changes in fair value less costs to sell are recognised in profit or loss in the period of the change Fundamental principle of IAS 2 Inventories are required to be stated at the lower of cost and net realisable value NRV IAS 2 9 Measurement of inventories Cost should include all IAS 2 10 costs of purchase including taxes transport and handling net of trade discounts received costs of conversion including fixed and variable manufacturing overheads and other costs incurred in bringing the inventories to their present location and condition IAS 23 Borrowing Costs identifies some limited circumstances where borrowing costs interest can be included in cost of inventories that meet the definition of a qualifying asset IAS 2 17 and IAS 23 4 Inventory cost should not include IAS 2 16 and 2 18 abnormal waste storage costs administrative overheads unrelated to production selling costs foreign exchange differences arising directly on the recent acquisition of inventories invoiced in a foreign currency interest cost when inventories are purchased with deferred settlement terms The standard cost and retail methods may be used for the measurement of cost provided that the results approximate actual cost IAS 2 21 22 For inventory items that are not interchangeable specific costs are attributed to the specific individual items of inventory IAS 2 23 For items that are interchangeable IAS 2 allows the FIFO or weighted average cost formulas IAS 2 25 The LIFO formula which had been allowed prior to the 2003 revision of IAS 2 is no longer allowed The same cost formula should

    Original URL path: http://www.iasplus.com/en/standards/ias/ias2 (2016-02-10)
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