Document ID: chunk:federal_register_of_legislation:F2022C00496:body:0:p11
Version: federal_register_of_legislation:F2022C00496
Segment Type: other
Provision Reference: 
Character Range: 26426–29295

held in different classifications of inventories and the extent of the changes in these assets is useful to financial statement users. Common classifications of inventories are merchandise, production supplies, materials, work in progress and finished goods.
38 The amount of inventories recognised as an expense during the period, which is often referred to as cost of sales, consists of those costs previously included in the measurement of inventory that has now been sold and unallocated production overheads and abnormal amounts of production costs of inventories. The circumstances of the entity may also warrant the inclusion of other amounts, such as distribution costs.
39 Some entities adopt a format for profit or loss that results in amounts being disclosed other than the cost of inventories recognised as an expense during the period. Under this format, an entity presents an analysis of expenses using a classification based on the nature of expenses. In this case, the entity discloses the costs recognised as an expense for raw materials and consumables, labour costs and other costs together with the amount of the net change in inventories for the period.

Effective date
40 An entity shall apply this Standard for annual periods beginning on or after 1 January 2018. Earlier application is encouraged for periods beginning after 24 July 2014 but before 1 January 2018. If an entity applies this Standard for a period beginning before 1 January 2018, it shall disclose that fact.
40A [Deleted]
40B [Deleted]
40C [Deleted by the AASB]
40D [Deleted]
40E AASB 2014-5 Amendments to Australian Accounting Standards arising from AASB 15, issued in December 2014, amended the previous version of this Standard as follows: amended paragraphs 2, 8, 29 and 37 and deleted paragraph 19.  An entity shall apply those amendments when it applies AASB 15.
40F AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010) (as amended) amended the previous version of this Standard as follows: amended paragraph 2(b) and deleted paragraph 40A.  Paragraph 40B, added by AASB 2010-7, was deleted by AASB 2014-1 Amendments to Australian Accounting Standards.  Paragraph 40D, added by AASB 2014-1 was deleted by AASB 2014-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2014).  An entity shall apply those amendments when it applies AASB 9.
40G AASB 16 Leases, issued in February 2016, amended paragraph 12. An entity shall apply that amendment when it applies AASB 16.

Withdrawal of other pronouncements
41–
42 [Deleted by the AASB]

Transition
Aus42.1 Not-for-profit entities shall apply paragraph Aus9.1 and measure inventories held for distribution at cost, adjusted when applicable for any loss of service potential, on a prospective basis from the beginning of the annual period to which this Standard