Definition of inventory according to IAS 2.

Inventories, per paragraph 6 of IAS 2 are assets that are

  • Held for sale in the ordinary course of business
  • In the process of production for such sale; or
  • In the form of materials or supplies to be consumed in the production process or in the rendering of services.

Inventories per IAS 2 comprise
 a) Merchandise
 b) Production Supplies 
c) Materials
 d) Work in Progress
 e) Finished Goods authorized for issue.

3 thoughts on “Definition of inventory according to IAS 2.”

  1. Pingback: Inventory Turnover Ratio – meaning and formula. – ACCOUNTING CLASS

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