What is Method for reflecting changing prices in IFRS Reflection in the financial statements of changes in accounting ?
The enterprise must select one of two broad accounting methods for reflecting the effects of changing prices:
- 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.
For more details you can view here.