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.
Nobody downloaded yet

IAS2 Inventories - Essay Example

Comments (0)
It guides in the determination of the inventory cost and the subsequent recognition of an expense that includes write-down to the net realizable value. It also guides on the cost formulas which are used in…
Download full paper
IAS2 Inventories
Read TextPreview

Extract of sample
IAS2 Inventories

Download file to see previous pages... The main objective of IASB for IAS2 was to reduce the alternatives in the measurement of inventories. The revised IAS2 does not allow the consideration of the exchange differences, arising from the purchase of inventories that are invoiced in the overseas currency, to be treated as a part of inventories purchase cost (Malaysian Accounting Standards Board, n.d.).
As per IAS2 the inventories are measured at cost or realizable value whichever is lower, based on every item. The inventory costs is the sum total of the purchase cost like cost price, import duties, handling as well as transportation costs; after the adjustments of rebates and trade discounts, conversion costs and other costs that are incurred for transporting the inventories to the current location and form. But this excludes the storage costs, costs relating to abnormal wastage; and selling and administration. Inventories costs can be approximated using the standard cost method or retail inventory method.
The cost of inventories relating to items that are usually interchangeable and also goods or services that are produced and set aside for other projects can be assigned costs on the basis of specific identification. The inventories are valued using the first-in-first-out (FIFO) method or the weighted average method. In FIFO the items in the inventory are measured on the basis of recent purchase.
Net realizable value is the amount that the business expects to receive from the inventory sale in the due course of the business. In the Balance Sheet an entity reports the lower of the net realizable value and cost as an asset. This is shown below-
After the sale of inventories, the carrying amount of the related inventories is recognized as expenditure in the statement of income in the time period when the revenue from it is recognized. In the event of a fall in the net realizable ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
Meyer-Briggs Trait and Reinhold Cognitive Style Inventories
The “N” stands for iNtuitive, which means that I base my life and decisions on the heart and feelings, while seeking patterns of interrelationship between complex events and effects. This also represents a propensity towards focusing on the future rather than the present, and the use of imagination over “common sense” to find creative solutions to social problems.
3 Pages(750 words)Essay
A Personal Assessment Using Self-Assessment Inventories
This also suggests that I am not likely to be authoritarian. In the context of work, I believe that being dogmatic and narrow-minded is not only counter-productive, it stifles creativity and innovation. For example, if I am to become a leader, I feel that it is better to embrace the differences of personalities in my team-people develop different viewpoints, values, and traits as a result of different backgrounds and experiences.
6 Pages(1500 words)Essay
Personality inventories
A number of personality scales exist, and there is contention on how many factors are preferable in undertaking personality inventories. However, the more common inventories test 5 and 16 factors respectively (UNSW, 2003). Among the characteristics of a personality inventory test are: 1) it often takes from 30 to 90 minutes to accomplish, 2) there is no time element in conducting the test, 3) tests are often administered using paper and pencil (although computer formats are increasingly becoming common), 4) answers are neither right nor wrong, 5) questions do not allow for "open responses", 6) tests often feature scales that measure inconsistency and/or positive or negative impression, 7) q
2 Pages(500 words)Essay
Operations Management - Inventory
Only when the inventory is completely out of stock and the orders are placed to the effect, is the replenishment done. Dependent Demand, on the other hand, is governed by the Requirements Philosophy, wherein the demand is also created due to the operations.
2 Pages(500 words)Essay
Mangerial Accounting Assignment
According to the regulation, the definition of cost includes all costs of purchase, costs of conversion and all other costs incurred by any firm in bringing the inventories to their personal location and condition. Inventories shall be measured at the lower of cost and net realizable value.
8 Pages(2000 words)Essay
Personality Inventories Reliability, Validity, Correlation
The ICI questionnaire is an adaptation of Duttweiler's 28 item inventory (Duttweiler, 2004). It is a measure of a person's belief in how much control they possess in their own life. The two extremes are those who believe they possess complete control in determining what they receive in life (the Internals), and those who believe that they have absolutely no control (the Externals).
2 Pages(500 words)Essay
International accounting standard No.2 (IAS2) inventory
This standard does not apply to financial instruments and it gives out a guideline on how to measure an asset which is categorized as an inventory, which concept constitute of the cost and at what time an expense
6 Pages(1500 words)Essay
Module 4; APPLIED DECISION METHODS; Discussion Inventory Control Models
Carrying cost is the price of possessing inventory. Inventory carrying entails inventory storage and capital cost. In addition, it involves storage and management by the business owners or external vendors. There are numerous carrying costs
1 Pages(250 words)Essay
Phonemic inventories
According to Bischoff and Fountain (2011), a constant is a sound of speech which is uttered through partial or complete closure of the vocal tract. To make a p sound,
3 Pages(750 words)Assignment
Phonemic Inventories
pter on phonetics, Bischoff and Fountain (2014) ostensibly define vowels as a speech sounds that are produced by minimal limitation of airflow via the vocal tract, with trembling of the vocal cords. Vowels form the nucleus of a syllable and define whether the articulation of a
3 Pages(750 words)Assignment
Let us find you another Essay on topic IAS2 Inventories for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us