IAS 2 INVENTORIES - INTRODUCTION

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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