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International Accounting Standards (IAS)
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| U.S. GAAP | IFRS, IAS | Accounting Topics |
International Accounting Standard (IAS) 2
Inventories
| International Accounting Standard (IAS) 2 |
IAS 2 Inventories Issued in December 1993: replaced October 1975 version
of IAS 2 Recent amendment: by IFRS 8 issued in November
2006 |
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Cost formula (1) LIFO (Last-in, First-out) is not allowed. (2) FIFO (First-in, First-out) is allowed. (3) Weighted average method is allowed. |
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Inventories are measured at the lower of (1) and (2) (1) Cost (2) Net realisable value |
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Net realisable value is: (1) net amount expected to realise (2) from selling inventories (3) during ordinary course of business Net realisable value is entity-specific. |
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Cost of inventories (1) costs of purchase (2) costs of conversion (3) other costs |
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Costs not included in the cost of inventories (1) abnormal waste (2) storage costs (3) administrative overheads (4) selling costs |
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IAS
2 Technical Notes |
