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. - SIC 32 Intangible Assets – Website Costs
Addresses accounting for costs associated with the development of a website.
This page was last updated 4 February 2022.