IAS02_06 - IAS 2 International Accounting Standard 2...

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IAS 2 © IASCF 743 International Accounting Standard 2 Inventories This version includes amendments resulting from new and amended IFRSs issued up to 31 December 2005.
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IAS 2 744 © IASCF C ONTENTS paragraphs INTRODUCTION IN1–IN17 INTERNATIONAL ACCOUNTING STANDARD 2 INVENTORIES OBJECTIVE 1 SCOPE 2–5 DEFINITIONS 6–8 MEASUREMENT OF INVENTORIES 9–33 Cost of inventories 10–22 Costs of purchase 11 Costs of conversion 12–14 Other costs 15–18 Cost of inventories of a service provider 19 Cost of agricultural produce harvested from biological assets 20 Techniques for the measurement of cost 21–22 Cost formulas 23–27 Net realisable value 28–33 RECOGNITION AS AN EXPENSE 34–35 DISCLOSURE 36–39 EFFECTIVE DATE 40 WITHDRAWAL OF OTHER PRONOUNCEMENTS 41–42 APPENDIX Amendments to other pronouncements APPROVAL OF IAS 2 BY THE BOARD BASIS FOR CONCLUSIONS
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IAS 2 © IASCF 745 International Accounting Standard 2 Inventories (IAS 2) is set out in paragraphs 1–42 and the Appendix. All the paragraphs have equal authority but retain the IASC format of the Standard when it was adopted by the IASB. IAS 2 should be read in the context of its objective and the Basis for Conclusions, the Preface to International Financial Reporting Standards and the Framework for the Preparation and Presentation of Financial Statements . IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors provides a basis for selecting and applying accounting policies in the absence of explicit guidance.
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IAS 2 746 © IASCF Introduction IN1 International Accounting Standard 2 Inventories (IAS 2) replaces IAS 2 Inventories (revised in 1993) and should be applied for annual periods beginning on or after 1 January 2005. Earlier application is encouraged. The Standard also supersedes SIC-1 Consistency—Different Cost Formulas for Inventories . Reasons for revising IAS 2 IN2 The International Accounting Standards Board developed this revised IAS 2 as part of its project on Improvements to International Accounting Standards. The project was undertaken in the light of queries and criticisms raised in relation to the Standards by securities regulators, professional accountants and other interested parties. The objectives of the project were to reduce or eliminate alternatives, redundancies and conflicts within the Standards, to deal with some convergence issues and to make other improvements. IN3 For IAS 2 the Board’s main objective was a limited revision to reduce alternatives for the measurement of inventories. The Board did not reconsider the fundamental approach to accounting for inventories contained in IAS 2. The main changes IN4 The main changes from the previous version of IAS 2 are described below. Objective and scope
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This note was uploaded on 06/12/2011 for the course ECON 801 taught by Professor Brend during the Summer '11 term at Abu Dhabi University.

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IAS02_06 - IAS 2 International Accounting Standard 2...

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