Ias2
EC staff consolidated version as of 16 September 2009,
FOR INFORMATION PURPOSES ONLY
EN - EU IAS 2
International Accounting Standard 2
Inventories
Objective
1
The objective of this Standard is to prescribe the accounting treatment for inventories. A primary issue in accounting for inventories is the amount of cost to be recognised as an asset and carried forward until the related revenues are recognised. This Standard provides guidance on the determination of cost and its subsequent recognition as an expense, including any write-down to net realisable value. It also provides guidance on the cost formulas that are used to assign costs to inventories.
Scope
2
This Standard applies to all inventories, except:
(a)
(b)
financial instruments (see IAS 32 Financial Instruments: Presentation and IAS 39 Financial
Instruments: Recognition and Measurement); and
(c)
3
work in progress arising under construction contracts, including directly related service contracts (see IAS 11 Construction Contracts);
biological assets related to agricultural activity and agricultural produce at the point of harvest (see IAS 41 Agriculture).
This Standard does not apply to the measurement of inventories held by:
(a)
producers of agricultural and forest products, agricultural produce after harvest, and minerals and mineral products, to the extent that they are measured at net realisable value in accordance with well-established practices in those industries. When such inventories are measured at net realisable value, changes in that value are recognised in profit or loss in the period of the change.
(b)
commodity broker-traders who measure their inventories at fair value less costs to sell. When such inventories are measured at fair value less costs to sell, changes in fair value less costs to sell are recognised in profit or loss in the period of the change.
4
The inventories referred to in paragraph 3(a) are measured at net
FOR INFORMATION PURPOSES ONLY
EN - EU IAS 2
International Accounting Standard 2
Inventories
Objective
1
The objective of this Standard is to prescribe the accounting treatment for inventories. A primary issue in accounting for inventories is the amount of cost to be recognised as an asset and carried forward until the related revenues are recognised. This Standard provides guidance on the determination of cost and its subsequent recognition as an expense, including any write-down to net realisable value. It also provides guidance on the cost formulas that are used to assign costs to inventories.
Scope
2
This Standard applies to all inventories, except:
(a)
(b)
financial instruments (see IAS 32 Financial Instruments: Presentation and IAS 39 Financial
Instruments: Recognition and Measurement); and
(c)
3
work in progress arising under construction contracts, including directly related service contracts (see IAS 11 Construction Contracts);
biological assets related to agricultural activity and agricultural produce at the point of harvest (see IAS 41 Agriculture).
This Standard does not apply to the measurement of inventories held by:
(a)
producers of agricultural and forest products, agricultural produce after harvest, and minerals and mineral products, to the extent that they are measured at net realisable value in accordance with well-established practices in those industries. When such inventories are measured at net realisable value, changes in that value are recognised in profit or loss in the period of the change.
(b)
commodity broker-traders who measure their inventories at fair value less costs to sell. When such inventories are measured at fair value less costs to sell, changes in fair value less costs to sell are recognised in profit or loss in the period of the change.
4
The inventories referred to in paragraph 3(a) are measured at net