The purpose of this course is to familiarise you with the measurement of inventories, including any write-down to net realisable value it also covers the cost formulas that may be used to assign costs to inventories. Ias 2 contains the requirements on how to account for most types of inventory the standard requires inventories to be measured at the lower of cost and net realisable value (nrv) and outlines acceptable methods of determining cost, including specific identification (in some cases), first-in first-out (fifo) and weighted average cost. The ifrs foundation's logo and the ifrs for smes ® logo, the iasb ® logo, the ‘hexagon device’, eifrs ®, ias ®, iasb ®, ifric ®, ifrs ®, ifrs for smes ®, ifrs foundation ®, international accounting standards ®, international financial reporting standards ®, niif ® and sic ® are registered trade marks of the ifrs foundation, further details of which are available from the ifrs . Ias 2 inventories is the accounting standard governing the recognition, measurement and disclosures for inventories inventories are assets: held for sale in the normal course of business (eg a retailer will hold stock, a. Ias 2 (international accounting standard 2) - inventories objectives-ias 2 is to prescribe the accounting treatment for inventories a primary issue in accounting for inventories is the amount of cost to be recognized&hellip.
Ias 2 international accounting standard 2 inventories this version includes amendments resulting from ifrss issued up to 31 december 2009 ias 2 inventories was issued by the international accounting standards committee in december 1993. 4 | ias 2 inventories recognition and measurement ias 2 requires inventories to be measured at the lower of cost and net realisable value cost of inventory the cost of inventories is the aggregation of:. A summary of ias 2 covering the treatment of inventories.
By ias 2 for inclusion in cost of inventory measurement subsequent to initial recognition, entities should measure inventories at the lower of cost or net realisable. Ias 2 (inventories) 1 ias-2 (inventories) course facilitator : muhammad asim khan 2 introduction according to ias 2 inventories are assets: held for sale in the ordinary course of business in the process of production for such sale or in the form of materials or supplies to be consumed in the production process or in the rendering of services. The definition of inventories is the same in ias 2 and the rules of the rj book 2 bw is applicable on every type of inventory ias 2 is not applicable for every type . Inventories shall be measured at the lower of cost and net realizable value cost of inventories are all costs of purchase , costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Introduction:- the objective of ias 2, inventories, is to prescribe the accounting treatment for inventories a primary issue in accounting for inventories is the amount of cost to be recognised as an asset and carried forward until the related revenues are recognised.
2 ias 2 provides guidance on the following in respect of the accounting for inventories: • the amount of cost to be recognised as an asset and carried forward until the related. Please note ias 2 does not apply to work in progress, some non-tangible assets and some assets of a biological nature eg cows on a farm even if they are considered inventories all these are dealt with by their specific standards. Ias 2 inventories powerpoint presentation, ppt - docslides- ssap 9 mr barry a-level accounting year12 introduction inventories mr barry a-level accounting .
22 other techniques for the measurement of cost of inventory ias 2 allows the use of standard cost and retail method if the cost determined under such method is approximately the same as cost measured under the provisions described above. The accounting standard ias 2 sets out the accounting treatment for inventories and provides guidance on determining their cost find articles, books and online resources providing quick links to the standard, summaries, guidance and news of recent developments. Scope •standard does not apply to the measurement of inventories held by: –producers of agricultural and forest products, –agricultural produce after harvest, and .
The revised ias 2 inventories or international accounting standard 2 inventories has replaced ias 2 inventories in 1993 these standards were applied annually from january 1, 2005. Ec staff consolidated version as of 16 september 2009, en - eu ias 2 for information purposes only 1 international accounting standard 2 inventories. Ias 2 'inventories' ias 8 (revised) 'accounting policies, changes in accounting estimates and errors' ias 10 (revised) 'events after the reporting period'.