Nobody downloaded yet

International accounting standard No.2 (IAS2) inventory - Essay Example

Comments (0) Cite this document
Summary
International accounting standard No.2 (IAS2) “Inventory” gives the rules which should be followed during the recording and presentation of inventory. Inventory refers to goods which are held by a firm for sale, are in the production process or are materials which will be…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.6% of users find it useful
International accounting standard No.2 (IAS2) inventory
Read TextPreview

Extract of sample
"International accounting standard No.2 (IAS2) inventory"

Download file to see previous pages In the year 1974 during the draft of standard, the name was changed to “inventories” from “valuation and presentation of Inventories in the Context of the Historical Cost System” the first draft was affected on 1st of January in the year 1995 and this was 21 years after the first draft exposure. On 18th of December 2003, the standard was revised and took effect as from the strart of January 2005. In the year 2003, there was a revised IAS 2 whereby different cost formulas for inventories were incorporated into the standard. These were superseded from SIC 1 on consistency.
On December 1997, SIC 1 was issued and was effective as from 1st January 1999. sic 1 required that that the same cost formula was to be used for inventories with the same characteristics under IAS 2.21 AND IAS 2.23. in that case, different methods may be used where inventory items were different from other groups (International Accounting Standards Board, 2008, p.978).
SIC stands for Standing International Committee (SIC), and it was renamed to International Financial Reporting Issues Committee (IFRIC). some of the issues in SIC were not added in IFRIC’s Agenda. This are as follows:
The question was whether cash discounts received should be subtracted from the cost of goods purchased. A decision was made in august of the year t 2002 that they should not be added. The reason given by IFRIC was that paragraph 8 of IAS 2 provided enough guidance and thus it was not necessary to publish on the interpretation on the issue.
The problem was on how to treat net realizable value when the inventory is consumed as part of the service rendered. A decision was made in the march of 2004 that it should not be added. It was noted that it existed for commercial bodies. It was thus concluded that the matter involved the recoverability of an asset which ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“International accounting standard No.2 (IAS2) inventory Essay”, n.d.)
International accounting standard No.2 (IAS2) inventory Essay. Retrieved from https://studentshare.org/miscellaneous/1562819-international-accounting-standard-no2-ias2-inventory
(International Accounting Standard No.2 (IAS2) Inventory Essay)
International Accounting Standard No.2 (IAS2) Inventory Essay. https://studentshare.org/miscellaneous/1562819-international-accounting-standard-no2-ias2-inventory.
“International Accounting Standard No.2 (IAS2) Inventory Essay”, n.d. https://studentshare.org/miscellaneous/1562819-international-accounting-standard-no2-ias2-inventory.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Critical Appraisal of the International Accounting Standard
...whether the variance in the option of fair value information before and after the adoption of the IAS 40 in the market presented an improvement in information asymmetry variance among firms. CHAPTER 2 The second chapter includes previous literatures that are related to the topic at hand. Information in this chapter has been gathered and collated to support the present study in terms of identifying the strengths and areas for improvement of the International Accounting Standard 40 in relation to the relevance and reliability of fair value accounting, categorized under decision usefulness. IAS 40 – An Overview The...
53 Pages(13250 words)Dissertation
International Accounting Standard 19, Employee Benefits
...?International Accounting Standard 19, Employee Benefits Affiliation with more information about affiliation, research grants, conflict of interest and how to contact Topic:  International Accounting Standard 19, Employee Benefits Introduction The aim of this research paper is to conduct an in-depth study of a subject related to International Accounting Standard 19, Employee Benefits. It also attempts a structured research to identify the advantages and disadvantages of the IAS 19 standards regarding the employee benefit scheme. International...
6 Pages(1500 words)Research Paper
The Relevant International Accounting Standard (IASB)
...?Contents Overview of the relevant international accounting standard (IASB) 2 Recognition, Measurement, presentation and disclosure details  3 Comparison with the US GAAP  7 Example from annual report [5] 8 Discussion 9 Overview of the relevant international accounting standard (IASB) Provision can be defined as a liability of uncertain timing or amount. Whereas contingent liability, as per IAS 37, is the present obligation in respect of past event the settlement requiring outflows of resources. Similarly, contingent asset also arises due to past events which are expected as an inflow of economic resources to the entity. Both contingent assets and contingent liabilities are not recognized but disclosed in the financial statement... ]...
9 Pages(2250 words)Assignment
Accounting Standard AASB138 Intangible Assets
...up for the two will be integrated as one so as to have a total aggregate of the expenditure. What is more, the AASB138 requires specific items that cover cost of all internally generated intangible assets to be accounted for (66). These would include costs of materials and services, cost of employee benefits, fees to register a legal right and amortisation of patents and licenses (66, a, b, c). There however exist some freebies as far as items to be covered are concerned as there are entities that are encouraged but not necessarily required. These include amortised intangible assets that are still in use and intangible assets that did not match up the recognition criteria in the Standard...
5 Pages(1250 words)Essay
International Accounting Standard Mib Water For All
...International Accounting Standard Mib Water For All (Mibw4a) Evaluating business plan Launched in 2010 after a group of friends identified the need to fill the market gap, MIBW4A main objective was to use venders and technology to supply clean water to the consumers and families especially in South American State of Peru. According to a report filled by the health departments, waterborne pathogens such as diarrhea accounted for more than 4 million deaths among children in South America. More children succumbed to water related deaths than malaria, hence the need for clean and treated water. Wanting to conduct business, MIBW4A identified an economical and sustainable...
6 Pages(1500 words)Essay
Inventory Accounting for Product Lines
...Running Head: Millennium Motors Inventory Accounting for Product lines Millennium Motors The three inventories at Millennium Motors have particular characteristics and features that make it highly suitable for them to use different inventory costing methods to make use of accounting flexibilities and appropriateness. The automotive body plans and kits are expensive items and since they can be easily tracked by their serial numbers, a First In-First Out (FIFO) the inventory costing method would be the most suitable one for this scenario. This is due to the fact that actual costing is more relevant in this case to recognize cost of goods sols and appropriate profits from sales since the units can be differentiated from each... other and bear...
2 Pages(500 words)Case Study
IAS2 Inventories
...the ceiling, the value of inventory reported under IAS 2 is more than or equal to the inventory amount under GAAP (Bao & Romeo, n.d.). Example Tesco Plc follows IFRS in presenting its accounting information (London Stock Exchange plc, 2009). In its annual reports for the year 2009 the company has valued its inventories at cost and fair value minus costs of sell using the weighted average method of costing (Tesco Plc, 2009, pp. 74). Discussion IAS2 relates to the accounting treatment of the inventories in the books of account. The inventories consist of the assets that...
5 Pages(1250 words)Essay
INTERNATIONAL FINANCE: Gold Standard
...INTERNATIONAL FINANCE: Gold Standard INTERNATIONAL FINANCE: Gold Standard Gold standard refers to a monetary system in which specific amount of gold is used as the unit of account or as medium of exchange. In the early 1930’s the monetary system was gold standard, this was the era in which the greatest catastrophe to ever occur in the economic history was experienced. Many economics have tried to offer explanations on what led to the catastrophe which is popularly known as the great depression. Many scholars have postulated that the gold monetary systems largely contributed to the 1930’s economic crisis (Eichengreen and...
3 Pages(750 words)Essay
International Accounting Standard Individual Assignement
...INTERNATIONAL ACCOUNTING STANDARD MIB WATER FOR ALL (MIBW4A) College: number: Evaluating business plan Launched in after a group offriends identified the need to fill the market gap, MIBW4A main objective was to use venders and technology to supply clean water to the consumers and families especially in South American State of Peru. According to a report filled by the health departments, waterborne pathogens such as diarrhea accounted for more than 4 million deaths among children in South America. More children succumbed to water related deaths than malaria, hence the need for clean and treated water. Wanting to conduct business, MIBW4A identified an economical and...
6 Pages(1500 words)Essay
Repoliticalization of Accounting Standard Setting
...REPOLITICALIZATION OF ACCOUNTING STANDARD SETTING-THE IASB, THE EU AND THE GLOBAL FINANCIAL CRISIS Summary The past decade saw the IASB operate independently and in full control of its mandate. However, the financial crisis that swept across the world in 2008 raised eyebrows and had financial bodies look at their policies. The article focuses on the political forces on the amendment and decision out of the financial institutions. They desired to shape financial institutions appropriateness and overall purpose of the accounting foundations (BENGTSSON, Elias, 2011). The approach is taken by the creators of the articles involved research on available documentation from relevant bodies via the internet. Some researchers have claimed... but...
1 Pages(250 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Essay on topic International accounting standard No.2 (IAS2) inventory for FREE!
Contact Us