PAS 2 - PAS2 INVENTORIES MODULEOBJECTIVES Identify the...

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    PAS 2 INVENTORIES
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MODULE OBJECTIVES Identify the scope of PAS 2 Define inventories Account for initial recognition of inventories Measure inventories subsequent to initial recognition
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SCOPE PAS 2, INVENTORIES, applies to all inventories, except Work in process arising from construction contracts (PAS 11) Financial instruments (PAS 32 and 39) Biological assets and agricultural produce at the point of harvest (PAS 41)
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Exception to Measurement  Requirements Measurement requirements of PAS 2 do not apply to inventories held by Producers of agricultural and forest products, agricultural produce after harvest to the extent that they are measured at NRV; Commodity broker-traders who measure their inventories at FV less costs to sell.
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INVENTORIES DEFINED Goods held for sale in the ordinary course of business; Goods in the process of production for such sale; In the form of materials or supplies to be consumed in the production process or in the rendering of services In the case of service providers, the cost of service for which the entity has not yet recognized the related revenue.
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INITIAL RECOGNITION Inventories are initially recognized at cost. Components of Cost Cost of purchase Costs of conversion Other costs incurred in bringing the inventories to their present location and condition
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COST OF PURCHASE Purchase price, net of trade discounts, rebates and other similar items Import duties and other taxes Transport, handling and other costs directly attributable to acquisition
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PAS 2 - PAS2 INVENTORIES MODULEOBJECTIVES Identify the...

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