Revision question on Financial accounting – IAS 2.



The objective of IAS 2 Inventories is to prescribe the accounting treatment for inventories and provide guidance for measuring and valuation of inventories. It determines the cost of inventories and subsequent recognition as an expense, including any write-down to net realisable value.

Required:

i)   Explain Inventories. 

ii)  Explain how inventories are measured and valued in the financial statements in accordance with IAS 2.                        

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