IAS 2

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2020 Updated list of International Accounting Standards (IAS)

The following are the list of updated international accounting standards (IAS) in 2020:

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Revision question on financial accounting – IAS 2 (Esinam ltd)

Esinam Ltd has the following products in inventory at the end of 2016:

  Units Cost per unit Tsh
Ahomka (completed) 5,400 22
Adonko (part complete) 2,800 26

Each product normally sells at Tsh 34 per unit. Due to the difficult trading conditions, Esinam Ltd intends to offer a discount of 15% per unit and expects to incur Tsh 4 … Read the rest

Procedures of determining cost of inventory under IAS 2.

IAS 2 inventories  was first issued on October 1975, and most recently revised in December 2003. Its most important principle is that inventories to be measured at lower of their cost and net realizable value. Cost is defined as cost of purchase, cost of conversion, plus any cost that are incurred in bringing the inventory items to their present location and condition.

Inventory

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Principles for determining the net relaizable value under IAS 2.

IAS 2 Inventories was first issued in October 1975, and most recently revised in December 2003. its most important principle is that inventories be measured at lower of their cost and net realizable value.
Net realizable value (NRV) is calculated as the expected sale proceeds less any selling cost to be incurred in achieving the sale proceed. If there is further work to … Read the rest