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.

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