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IAS 2 Inventory

IAS 2 Inventory

Objective

1 The objective of this Standard 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. This Standard provides guidance on the determination of cost and its subsequent recognition as an expense, including any write-down to net realisable value. It also provides guidance on the cost formulas that are used to assign costs to inventories.

Scope

2 This Standard applies to all inventories, except financial instruments; and biological assets related to agricultural activity and agricultural produce at the point of harvest (see IAS 41 Agriculture).

3 This Standard does not apply … Read more