FRS 102: Inventories under UK GAAP
FRS 102 Section 13 Inventories sets out the requirements that apply to the measurement and recognition of inventories (or stock and work in progress), and sets out the types of costs that should be included in the value of inventories.
The standard
The requirements regarding inventories are set out as part of FRS 102. However, individual sections of the standard should not be looked at in isolation as other parts may be relevant.
FRS 102 is regularly updated and amended by the Financial Reporting Council (FRC). For the full text of FRS 102, guidance on which version of the standard to apply and notes on recent amendments, see our main FRS 102 page.
ICAEW guides and support
Helpsheets and factsheets
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18-09-2018
Technical helpsheet to help ICAEW members with accounting for the transfer of property between Investment Property, Property, Plant and Equipment (PPE) and Inventories under FRS 102.
Bloomsbury Accounting and Tax Service
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Inventories
A chapter on financial reporting of inventories under FRS 102, Section 13. Topics covered include: impairment of inventories, recognising inventories in profit or loss and disclosure requirements.
Impairment of Assets
A chapter on financial reporting of impairment of assets under UK GAAP. Sections include: Impairment of inventory; Impairment of assets other than inventories; Reversal of an impairment loss; Disclosure requirements. This practical manual focuses on unlisted companies and has been comprehensively updated to reflect all changes made to UK and Ireland accounting standards up to November 2022.
Impairment of Assets
A chapter on impairment of assets within the small companies' financial reporting framework and the micro-entities legislation, written by a specialist on small company reporting issues. FRS 102 Section 27 and the impairment of inventories, impairment of assets other than inventory and impairment of goodwill are discussed, along with helpful real-life examples.
Inventories
Chapter on inventories - part of a one-stop-shop guide by Steve Collings on all aspects of UK auditing standards and new UK GAAP accounting standards. The chapter shows how to put the standards into practice, with sections including: Measurement of inventories; Cost of inventories; Techniques for measuring cost; Cost formulas; Inventory impairment; Disclosure requirements; Auditing inventories.
Impairment of Assets
A chapter on impairment of assets - part of a one-stop-shop guide by Steve Collings on all aspects of UK auditing standards and new UK GAAP accounting standards. The chapter shows how to put the standards into practice, covering the scope of UK GAAP, impairment of inventories, impairment of assets other than inventory, additional requirements for goodwill, reversals of impairments, disclosures and auditing impairment provisions and reversals.
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Inventories
Fully updated guide focusing on each area of the financial statement in detail with illustrative examples. This chapter gives a comparison of FRS 102 Section 13 Inventories and IFRS, and covers measurement, impairment of inventories, recognition of inventory in profit and loss, presentation, and disclosure.
Inventories
A practical manual for preparing new UK GAAP-compliant disclosures. This chapter gives an overview of basic principles and accounting policies, and discusses the presentation and disclosure requirements for stock and work in progress under FRS 102 Section 13.
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Example accounts
Model accounts and disclosure checklists for UK GAAP
The ICAEW Library can provide model accounts and disclosure checklists for FRS 101, FRS 102, FRS 102 Section 1A, FRS 103 and FRS 105. The examples and checklists cover a broad range of entities, including small companies, charities, groups, LLPs and micro-companies.
Further reading
Manuals and handbooks
The ICAEW Library stocks the latest UK GAAP handbooks and manuals. You can browse all our books on FRS 102 and inventories or request any of the following popular titles by contacting us on +44 (0)20 7920 8620, by web chat, or at library@icaew.com
GAAP 2019: UK reporting – FRS 102 (Volume B)
Deloitte, Croner-i, 2019
Comprehensive manual explaining how to apply FRS 102, with worked examples and extensive interpretation and guidance. The chapter on inventories covers the scope of Section 13, measurement of inventories, cost of inventories, cost formulas, impairment of inventories, recognition as an expense, and disclosure.
Manual of accounting: UK GAAP
PwC, Lexis Nexis, 2019
Practical guide with worked examples throughout, dealing with day-to-day issues as well as complex questions. The chapter on inventories looks at the recognition, measurement and cost of inventories; techniques for the measurement of cost; cost formulas; impairment; derecognition; presentation and disclosure.
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