StudentShare solutions
Triangle menu

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

Nobody downloaded yet

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

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 These were superseded from SIC 1 on consistency.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 ...Show more


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…
Author : abogan
International accounting standard No.2 (IAS2) inventory
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"International accounting standard No.2 (IAS2) inventory"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

International Accounting
sale 900000 1.3 1170000 Less cost of sales 720000 1.3 936000 gross profit 180000   234000 less depreciation 70000 1.4 98000 other expenses 30000 1.3 39000 net profit 80000   97000 c) IAS21 provides accounting concept when preparing financial statement of foreign subsidiaries.
4 pages (1000 words) Essay
International Accounting
Accounting is regarded as the language of business and hence IASB insists that accounting must speak an international language. In order to make global business transactions easier, the IASB/IASC had dealt with different accounting practices across the Europe in association with EU.
6 pages (1500 words) Essay
Approaches to Standard Setting in Accounting
This information is basically about entities in which different parties are involved and interested in. Parties herein refer to individual and group investors, markets and securities analysts, creditors as well as different entities in that regard. The underlying need for financial information provided through set accounting standards is to aid the decision making process, where the interest is to reach informed, effective and efficient decisions about resource allocation.
8 pages (2000 words) Essay
Accounting Standard AASB138 Intangible Assets
Part I Accounting Standard AASB138 Intangible Assets Required 1 Briefly describe how AASB138 requires research and development expenditures to be accounted for. The first stipulation given by the AASB138 in reference to accounting for research and development is for amount involved in the said research and development program to be disclosed in an aggregate.
5 pages (1250 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
IAS2 Inventories
Under this standard the inventories are measured at cost or net realizable value whichever is lower. The net realizable value refers to the selling price that is estimated to be received during the course of
5 pages (1250 words) Essay
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
The Benefits of Having a Standard International Accounting System: IAS1
h as the growth in multi-national business investors, cross-border business operations as well as the tremendous increase in the investment of foreign stock exchanges has created the need for an international accounting benchmark (Paul 2009). The International Accounting
3 pages (750 words) Essay
International Accounting Standard Individual Assignement
More children succumbed to water related deaths than malaria, hence the need for clean and treated water. Wanting to conduct business, MIBW4A identified
6 pages (1500 words) Essay
Critical evaluation of the international Accounting Standard and Financial Reporting Standard that applied on BRITIVC plc
oss the globe have accepted IAS and IFRS as their primary framework for the preparation of financial statements especially for the corporations that are conducting businesses in those territories. These standards serve a variety of purposes among which one of the major purposes
12 pages (3000 words) Essay
Comments (0)
Click to create a comment
Let us find you another Essay on topic International accounting standard No.2 (IAS2) inventory for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
Join us:
Contact Us