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.
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- 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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The following interpretation refers to IAS 2
This page was last updated 30 January 2020