It was revised in 2003 with the main objective of reducing the alternatives for the measurement of … This Standard applies to all inventories other than; Work in progress under construction contracts and directly related service contracts. IAS 2 applies to all inventories, except: Work in progress arising under construction contracts, including directly, related service contracts (see IAS 11 Construction Contracts), Financial instruments (see IAS 39 Financial Instruments), Biological assets related to agricultural activity and agricultural produce at, the point of harvest (see IAS 41 Agriculture). If you continue browsing the site, you agree to the use of cookies on this website. Q&A: IAS 2 Inventories September 30, 2016. Inventories IAS 2 - PowerPoint PPT Presentation. Introduction definitions 2. Questions 3 Inventories. This lecture is third in the series of corporate reporting , where the conceptual and operational details are harked upon regrading classification recognition and measurement of the inventories illustrated with pertinent examples The cost of inventories comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition (IAS 2.10). IFRS – IAS 2. It provides guidance for determining the cost of inventories and for subsequently recognising an expense, including any write-down to net realisable value. Zu diesen gehören Einzelzuordnung der individuellen … 4 | IAS 2 Inventories RECOGNITION AND MEASUREMENT IAS 2 requires inventories to be measured at the lower of cost and net realisable value. Inventories Gaap Vs. Ifrs PPT. Inventory carried out at lower of cost or market (LOCOM). Measurement 3. inventories – ias 2 n r govindarajan fca,aicwa,cisa,disa(icai) chartered accountant Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Ias 2 Inventories. Overall IAS 2 touches the following topics: Cost of inventory to be recognized; Cost formula to be used for inventory valuation IAS-2-Inventories.pptx - Free download as Powerpoint Presentation (.ppt / .pptx), PDF File (.pdf), Text File (.txt) or view presentation slides online. The basic measurement principle (lower of cost and net realizable value) is consistent with IAS 2. View IAS 2 Inventories.ppt from FINM 3111 at University of Central Punjab, Lahore. settled, between knowledgeable, willing parties in an arm’s length transaction. IAS 2 Inventories This Basis for Conclusions accompanies, but is not part of, IAS 2. In fact, the standard IAS 2 Inventories prescribes that when the inventories are: Not ordinarily interchangeable; and ; Goods or services are produced and segregated for specific projects, their cost shall be assigned using specific identification. INVENTORIES – IAS 2 N R GOVINDARAJAN FCA,AICWA,CISA,DISA(ICAI) CHARTERED ACCOUNTANT. IAS 2 Inventories replaced IAS 2 Valuation and Presentation of Inventories in the Context of the Historical Cost System (issued in October 1975). Commodity brokers who measure inventory at fair value less costs to sell. 2: At the time of Abnormal Loss. We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. CC Attribution-NonCommercial-ShareAlike License, 1. Download Skip this Video . IAS 2, Inventories – A Closer Look K.S.Muthupandian* In September 1974, the International Accounting Standards Committee (IASC) issued the Exposure Draft E2, Valuation and Presentation of Inventories in the Context of the Historical Cost System. “Presentation of Financial Statements.” 6. Im Standard wird vorgeschrieben, Vorräte mit dem niedrigeren Wert aus Anschaffungs- oder Herstellungskosten und Nettoveräußerungswert anzusetzen, und es werden akzeptable Methoden der Bestimmung von Kosten dargestellt. Instruments: Presentation and IAS 39 Financial Instruments: Recognition and Measurement; and c. biological assets related to agricultural activities and agricultural produce at the point of harvest – refer IAS 41 Agriculture. Looks like you’ve clipped this slide to already. The first signal for the modification of IAS 2 „St ock” occurred in 1999, Inventory is treated as current assets of the entity. Inventories IAS 2. IAS 2: Inventories. IAS 2, Inventories, requires that inventories be valued at cost, or, if lower, at net realisable value. Format of Income Statement. Introduction BC1 This Basis for Conclusions summarises the International Accounting Standards Board’s considerations in reaching its conclusions on revising IAS 2 Inventories in 2003. If you continue browsing the site, you agree to the use of cookies on this website. IFRS 2 - Share-based Payment . View IAS 2 - Inventories.ppt from ACCT 3604 at University of Technology, Jamaica. 0% 0% found this document not useful, Mark this document as not useful. ias 2 ppt - Free download as Powerpoint Presentation (.ppt), PDF File (.pdf), Text File (.txt) or view presentation slides online. Inventories are assets: Held for sale in ordinary course of business 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. Financial instruments (IFRS 9/IAS 39) 3. inventories – ias 2 n r govindarajan fca,aicwa,cisa,disa(icai) chartered accountant Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Now, let’s come back to our chocolates and explain all three cost formulas on chocolate sales and purchases. The first signal for the modification of IAS 2 „St ock” occurred in 1999, IAS 2 Inventories 1 Overview IAS 2 sets out the accounting treatment for inventories, including the determination of cost, the subsequent recognition of an expense and any write-downs to net realisable value. IAS 2 - Inventories Topic summary provided by PwC, giving latest developments and overview, a summary of … International Accounting Standard 2 Inventories(IAS 2) is set out in paragraphs 1–42 and the Appendix. IAS 2 and IAS 41: Cannabis Accounting – Presentation Extract, IFRS® Discussion Group Report on the Meeting – June 21, 2018 Paragraph 12 of IAS 41 Agriculture states that “[a] biological asset shall be measured on initial recognition and at the end of each reporting period at its fair value less costs to sell, except for the INVENTORIES ARE MEASURED AT THE LOWER OF COST AND NET REALISABLE VALUE (NRV) (This is … Presentation Summary : IAS 2 Inventories replaced IAS 2 Valuation and Presentation of Inventories in the Context of the Historical Cost System (issued in October 1975). Ind AS 2: AS 2: 1: Subsequent recognition of cost/carrying amount of inventories as an expense. 40 IAS 2 Inventories Also refer: IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine Effective Date Periods beginning on or after 1 January 2005 All inventories except: Specific quantitative disclosure requirements: of completion and the estimated costs to make the sale. This course is part of the IFRS Certificate Program — a comprehensive, integrated curriculum that will give you the foundational training, knowledge, and practical guidance in international accounting standards necessary in today's global business environment.. – IAS 2 Inventories – IAS 7 Cash flow statements – IAS 12 Income taxes – IAS 16 Property, Plant and Equipment – IAS 17 Leases – IAS 18 Revenue – IAS 32 Financial Instruments: Presentation and IAS 39 Financial Instruments: Recognition and Measurement – IAS 36 Impairment of assets – IAS 37 Provisions, contingent liabilities IAS 2 also provides guidance on cost formulas that are used to assign costs to inventories. Producers of agricultural and forest products measured at NRV. The revised IAS 2 inventories or International Accounting Standard 2 Inventories has replaced IAS 2 inventories in 1993. IAS 2 paragraph 9 prescribes that inventories must be measured at the lower of the cost and net realizable value. It also deals with the reversal of the write-down of inventories to NRV. In October 1975, the IASC issued IAS 2, Valuation and Share. IFRS 4 - Insurance Contracts. Print. IAS 1. Loading SlideShow in 5 Seconds.. University of Central Punjab, Lahore • FINM 3111, Polytechnic University of the Philippines, Dokuz Eylül University - Tınaztepe Campus, Polytechnic University of the Philippines • IAS 2, Dokuz Eylül University - Tınaztepe Campus • ACCOUNTING MISC, Amina Degree College for Women, Peshawar • ACCOUNTING 101. – IAS 2 sets out the accounting standard ) deals with the reversal of the entity page 1 7. Of subsequent assessment of NRV: IAS 2 inventories ( Conceptual ) ” Mehtab Hassan 11! % found this document useful, Mark this document as useful this slide Claim by Insurance.! And for subsequently recognising an expense, including any write-down to net realisable value other accounting rules online Resources quick. 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