As I have indicated above, the answer strongly depends on the cost formula used. While we clearly know what amount of inventories arrived to the warehouse at purchases, the cost of inventories dispatched from warehouse at sale must be calculated using one of cost formulas mentioned above. Also,...
IAS 2inventoriescost formulasfinancial instrumentsnet realizable valueNRVaccounting treatmentSummary This chapter focuses on International Accounting Standard 2 (IAS 2) which prescribes the accounting treatment for inventories. IAS 2 provides guidance on the determination of the cost and subsequent recognition...
IAS 2 requires disclosures about accounting policies, cost formulas used, total carrying amount (including by class) and of those at fair value less cost to sell, inventories expensed, inventories written-down, reversals of write-downs and the circumstances that lead to such reversals, inventories ...
The Standard also supersedes SIC-1 Consistency—Different Cost Formulas for Inventories. Reasons for revising IAS 2 IN2 The International Accounting Standards Board developed this revised IAS 2 as part of its project on Improvements to International Accounting Standards. The project was undertaken in ...
projects.TherevisedIAS2alsoincorporatedtheguidancecontainedinarelated Interpretation(SIC-1Consistency—DifferentCostFormulasforInventories). OtherIFRSshavemademinorconsequentialamendmentstoIAS2.TheyincludeIFRS9 FinancialInstruments(issuedNovember2009andOctober2010),IFRS13FairValue ...
For items that are interchangeable, IAS 2 allows the FIFO or weighted average cost formulas. The LIFO formula, which had been allowed prior to the 2003 revisio 28、n of IAS 2, is no longer allowed. The same cost formula should be used for all inventories with similar characteristics as ...
shall be assigned by using the first-in, first-out (FIFO) or weighted average cost formula. An entity shall use the same cost formula for all inventories having a similar nature and use to the entity. For inventories with a different nature or use, different cost formulas may be justified...
IAS简介(国际会计准则)IASC的建立 1972年在悉尼召开的国际会计师大会上，成立了会计职业国际协调委员会。经过该国际组织的主要成员国的有关人员的协商，提出了设立国际会计准则委员会的方案，后经准备委员会的筹备，终于在1973年6月由来自澳大利亚、加拿大、法国、德国、日本、墨西哥、荷兰、英国和爱尔兰以及美国的会计...
HistoryofIAS2 •2003.12 –RevisedversionofIAS2issuedbytheIASB •2005.1.1 –EffectivedateofIAS2(Revised2003)ObjectiveofIAS2 •Prescribetheaccountingtreatmentforinventories –determinethecostofinventories–recognizeanexpense •includinganywrite-downtonetrealizablevalue –costformulasthatareusedtoassigncost...
IAS 2 – Inventories Part 1: Introduction + Executive Summary Part 2: Inventory, Measurement of Inventory Part 3: Cost formulas, Net realisable value Part 4: Disclosures required in the financial statements Read IAS 2 Summary Online IAS 2 Test5 Disclosure required in the financial statements...