ias 2 inventory valuation
DESCRIPTION
Extract of International Accounting standard 2TRANSCRIPT
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PRESENTED BY; SHUAIB ADEADEBAYO ACA,CFE,ACCA…….
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IAS 2 States that inventory must be valued at lower of cost and net realizable value
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DOES NOT APPLY TO THE FOLLOWING
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ELEMENTS OF INVENTORIES ARE:
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COST OF INVENTORIES
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COSTS OF CONVERSION
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ISSUES TO REMEMBER
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N
Opening Inventory X Add: Purchases X Add: Carriage Inwards
X Less: Returns Outwards (X) Total goods Available X Less: Closing Inventory (X)COST OF GOODS SOLD X
COST OF GOODS SOLD FORMULA
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