The International Accounting Standards Board (IASB) revised IAS 2 to improve the International Accounting Standards. 2.5 Property, plant and equipment. �߫Cܯ!l�\���,D3�S������8$ގ��7�Q߄eO��5Sx�A���� �u� {~.���TsVJ$\͍��j�c���ƝB �ύ��x}��熤��b����c� IAS 2 – Inventories 6�Q�]��h�~�]O��.ɻ����9��5Ƙ�en IAS 2, 'Inventories', requires the cost for items that are not interchangeable or that have been segregated for specific contracts to be determined on an individual-item basis. IAS 2 requires that inventories are measured at the lower of cost and net realisable value. The Institute of Chartered Accountants in England and Wales, incorporated by Royal Charter RC000246 with registered office at Chartered Accountants’ Hall, Moorgate Place, London EC2R 6EA. IAS 2 allows the use of standard cost and retail method if the cost determined under such method is approximately the same as cost measured under the provisions described above. Language. IFRS checklists and model financial statements, View a list of articles and books in our collection on IAS 2 and stock valuation, Core Accounting and Tax Service (Bloomsbury). It offers technical briefings and factsheets, IFRS and UK GAAP standards-trackers, plus practical advice from industry experts and working accountants. 378 0 obj <>/Encrypt 349 0 R/Filter/FlateDecode/ID[<9045CA604E8AF645AF25FEA6A47EBED7>]/Index[348 49]/Info 347 0 R/Length 131/Prev 259129/Root 350 0 R/Size 397/Type/XRef/W[1 3 1]>>stream Practical guide to Phase 2 amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 for interest rate benchmark (IBOR) reform The IASB has issued amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 that address issues arising during the reform of benchmark interest rates including the replacement of one benchmark rate with an alternative one. Please see the full copyright and disclaimer notice. Employee benefits – IAS 19 24 Share-based payment – IFRS 2 26 Taxation – IAS 12, IFRIC 23 27 Earnings per share – IAS 33 28 Balance sheet and related notes 29 Intangible assets – IAS 38 30 Property, plant and equipment – IAS 16 31 Investment property – IAS 40 32 Impairment of assets – IAS … Commodity brokers who measure inventory at fair value less costs to sell. This e-learning course is part of an e-learning series designed by PwC Academy Hungary which aims to provide a comprehensive overview of the application of IFRS (IAS) standards to finance and accounting experts who are already familiar with fundamental (local) accounting and reporting processes. ICAEW accepts no responsibility for the content on any site to which a hypertext link from this site exists. Biological assets (IAS 41)Does not apply to measurement of inventories held by: 1. own research or study only, subject to the terms of use set by our suppliers and any restrictions imposed by PwC 2 1.1. The standard does not prescribe when hyperinflation arises but requires the financial statements (and corresponding figures for previous periods) of an entity with a functional currency that is hyperinflationary to be restated for the changes in the general pricing power of the functional currency. 348 0 obj <> endobj The main issues are the determination of the cost of inventory and Net Realizable Value, its subsequent accounting treatment, and the guidance on the cost formulas for the valuation of inventories. Free registration is required. IAS 2 Inventories Objective . As well as extracts from reports filed by all major public companies, Company Reporting also offers weekly CR Monitor Reports detailing changes to reporting practice and a broader monthly CR Review. It provides guidance for de­ter­min­ing the cost of in­ven­to­ries and for sub­se­quently recog­nis­ing an expense, including any write-down to net re­al­is­able value. Unaccompanied version of IAS 2 The links are provided ‘as is’ with no warranty, express or implied, for the information provided within them. Expert help for your enquiries and research. 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. ��}k[��R����#�e�O9r���n�dl(�w�{���`�,���J:&�u����K�N��@�. IAS 29 becomes applicable in Argentina: PwC In brief INT2018-12 and PwC In depth INT2018-13 Hyper-inflationary economies at 31 December 2018: PwC In brief INT2018-17 Accounting considerations for Venezuelan entities (update as of November 2018): PwC In brief INT2018-16 IAS 29 applies where an entity's functional currency is that of a hyperinflationary economy. The ICAEW Library can provide examples of real-life company reports to help keep you up-to-date with reporting practices and benchmark your financial reporting compliance. 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