IAS 2 (Inventories)

IAS 2 (Inventories) - IAS 2 INVENTORIES 11 Definition of...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
Click to edit Master subtitle style  3/20/11 INVENTORIES IAS 2 11
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
 3/20/11 Definition of “inventories” Inventories are assets: held for sale in the ordinary course of business; in the process of production for such sale; or in the form of materials or supplies to be consumed in the production process or in the rendering of services. 22
Background image of page 2
 3/20/11 Measurement of inventories Inventories are measured “ at the lower of cost and net realizable value Cost comprises “ all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Net realizable value is “ the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. 33
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
 3/20/11 Conversion costs Costs directly related to production (such as direct materials, direct labor) plus a systematic allocation of fixed and variable production
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/19/2011 for the course ACCT 440 taught by Professor Smith during the Spring '11 term at Saginaw Valley.

Page1 / 10

IAS 2 (Inventories) - IAS 2 INVENTORIES 11 Definition of...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online