Assets and liabilities linked by agreement to changes in prices, such as index-linked bonds and loans, are adjusted according to the agreement to establish the carrying value at the end of the reporting period.

Question

Quizplus · Accepted Answer

Assets and liabilities that are linked to changes in prices through agreements, like index-linked bonds and loans, are indeed adjusted according to those agreements to determine their carrying value at the end of a reporting period. This adjustment ensures that the financial statements accurately reflect the current value of these assets and liabilities in accordance with changes in relevant indices or prices.

Assets and Liabilities Linked by Agreement to Changes in Prices