INTRODUCTION
Aim
The
aim of this workbook is to assist the individual
in understanding Inventories according to IFRS. Inventories are the subject of International Accounting
Standard 2.
It
does not apply to:
(i)
Work in progress arising from Construction Contracts
(ii)
Financial Instruments
(iii)
Biological assets related to agriculture and agricultural
produce at the point of harvest.
(iv)
Commodity broker-traders 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 the income
statement in the period of the change.
(v)
Producers of agricultural and
forest products, agricultural produce after harvest, and minerals and mineral
products, when they are measured at net realisable value 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 the
income statement in the period of the change.
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