IAS 2 Inventories
Inventories prescribes the accounting treatment for inventories; it provides guidance on the determination of cost and its subsequent recognition as an expense, including any write-down to net realisable value.
Revised December 2003. Effective 1 January 2005.
Contents
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- Synopsis (including link to unaccompanied version of IAS 2)
- Related IFRICs
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Synopsis
- IAS 2 requires that inventories are measured at the lower of cost and net realisable value. ‘Cost’ includes all costs of bringing the item to its current location and condition.
- The cost of inventories should be assigned using either the first-in first-out or weighted average cost method.
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Recent amendments
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The following interpretation refers to IAS 2
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IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine
Addresses the accounting treatment of mine waste materials, which are the materials removed by mining entities in order to gain access to mineral ore deposits
This page was last updated 20 April 2018