Inventories are stated at the lower of cost or net realisable value. Introduction definitions 2. Please note IAS 2 does not apply to Work in Progress, some non-tangible assets and some assets of a biological nature e.g. It also deals with the reversal of the write-down of inventories to NRV. IFRS 2 - Share-based Payment . IAS 2 Inventory The objective of IAS 2 is to prescribe the accounting treatment for inventories. Inventories Gaap Vs. Ifrs PPT. This course is part of the IFRS Certificate Program — a comprehensive, integrated curriculum that will give you the foundational training, knowledge, and practical guidance in international accounting standards necessary in today's global business environment.. In October 1975, the IASC issued IAS 2, Valuation and The accounting standard dealing with inventory is IAS 2. INVENTORIES – IAS 2 N R GOVINDARAJAN FCA,AICWA,CISA,DISA(ICAI) CHARTERED ACCOUNTANT. IAS 1. IAS2 (Inventory) - Questions. IAS. Now, let’s come back to our chocolates and explain all three cost formulas on chocolate sales and purchases. 7. The Standing Interpretations Committee developed SIC-1 Consistency—Different Cost Formulas for Inventories, which was issued in December 1997. Inventory carried out at lower of cost or market (LOCOM). These standards were applied annually from January 1, 2005. All the paragraphs have equal authority but retain the IASC format of the Standard when it … Introduction : International Accounting Standard 2 Inventories (IAS 2) replaces IAS 2 Inventories (revised in 1993) and It should be applied for annual periods beginning on or after 1 January 2005. IAS 2 - Inventories. IAS 2. You can change your ad preferences anytime. Date added: 06-28-2020 ...Summary of IAS 2 IAS 2 (Inventories) (International Accounting Standard) deals with inventory and stock in trade. IFRS 5 - Non-current Assets Held for Sale and Discontinued Operations. It superseded the earlier SIC-1 Consistency-Different Cost Formulas for Inventories. IAS 2 also provides guidance on cost formulas that are used to assign costs to inventories. inventories – ias 2 n r govindarajan fca,aicwa,cisa,disa(icai) chartered accountant Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Instruments: Presentation and IAS 39 Financial Instruments: Recognition and Measurement; and c. biological assets related to agricultural activities and agricultural produce at the point of harvest – refer IAS 41 Agriculture. If you continue browsing the site, you agree to the use of cookies on this website. IAS-2-Inventories.pptx - Free download as Powerpoint Presentation (.ppt / .pptx), PDF File (.pdf), Text File (.txt) or view presentation slides online. EC staff consolidated version as of 16 September 2009, EN - EU IAS 2 FOR INFORMATION PURPOSES ONLY 1 International Accounting Standard 2 Inventories Objective 1 The objective of this Standard is to prescribe the accounting treatment for inventories. Introduction BC1 This Basis for Conclusions summarises the International Accounting Standards Board’s considerations in reaching its conclusions on revising IAS 2 Inventories in 2003. It also provides guidance on the cost formulas that are used to assign costs to inventories 2 IAS 2 Inventories. (330-8-35) Write-downs of inventories are required. IAS 2 paragraph 9 prescribes that inventories must be measured at the lower of the cost and net realizable value. IAS 2 Inventories.ppt - IAS 2 INVENTORIES Objective and Scope OBJECTIVE The objective of this Standard is to prescribe the accounting treatment for, The objective of this Standard is to prescribe the accounting treatment for. IFRS 3 - Business Combinations. This Standard applies to all inventories other than; Work in progress under construction contracts and directly related service contracts. “Presentation of Financial Statements.” 6. Presentation Title: Ias 2 Inventories Replaced Ias 2 Valuation And Presentation Of Inventories. IAS 2 - INVENTORIES Objective and Scope OBJECTIVE: The objective of this Standard is to prescribe the accounting Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. The cost of finished goods and work in progress comprises raw materials, direct labour, other direct costs and related production overheads (based on normal operating capacity) but excludes borrowing costs. Need to identify accounting treatments of inventories in the audit or job in of. User Agreement for details of the cost of inventory, identify cost formula, calculation of NRV is handy! 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