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    Chapter 8 IAS 2 Inventories

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    Chapter 8 IAS 2 Inventories

    Uploaded by

    Clarissa Borbon
    38 views7 pages
    Mind map for IAS 2 Inventories. This include answer for how the ias is done and why it is done. What is the purpose of this

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    Chapter-8-IAS-2-Inventories

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    Mind map for IAS 2 Inventories. This include answer for how the ias is done and why it is done. What is the purpose of this

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    38 views7 pages

    Chapter 8 IAS 2 Inventories

    Uploaded by

    Clarissa Borbon
    Mind map for IAS 2 Inventories. This include answer for how the ias is done and why it is done. What is the purpose of this

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    You are on page 1of 7

    CONCEPTUAL FRAMEWORK: A

    Using the 5 W’s 1 H Fram

    IAS 2 INVENTOR

    WHO

    Business Entity that


    sell goods.

    WHY

    To prescribe the
    accounting treatme
    needed for inventor
    and also to use as a g
    to properly assign co
    WHERE the inventories.

    Economic Environment of
    the entity.
    to properly assign co
    the inventories.

    Economic Environment of
    the entity.

    HOW

    Inventories should be meas


    at lower cost and net realiz
    value.

    *Cost of Inventories includ


    •Cost of Purchase
    • Cost of Conversion
    • Other cost incurred in
    bringing the inventories to
    present location and condi

    * Cost Measurement
    Techniques
    • Standard Cost- produce
    large amount of small ite
    • Retail Method- retailers
    large amount turnover o
    inventories with similar pr
    margin.

    Net Realizable Value- is t


    value of an asset that can
    realized upon the sale of
    items.
    Any write down to to ne
    realizable value should b
    recognized as expense in
    period im which the write d
    occurs.
    realized upon the sale of
    items.
    Any write down to to ne
    realizable value should b
    recognized as expense in
    period im which the write d
    occurs.
    UAL FRAMEWORK: A CONCEPTUAL MAP
    Using the 5 W’s 1 H Framework

    IAS 2 INVENTORIES

    WHAT

    Inventories- are the assets that


    are held for sale in the ordinary
    course of business.

    Determining how to measure


    inventories.
    WHY

    To prescribe the
    accounting treatment
    needed for inventories
    nd also to use as a guide
    o properly assign cost to
    the inventories. WHEN

    Monthly, at least annually with


    comparability.
    o properly assign cost to
    the inventories.

    Monthly, at least annually with


    comparability.

    HOW

    entories should be measured


    lower cost and net realizable
    value.

    Cost of Inventories includes:


    •Cost of Purchase
    • Cost of Conversion
    • Other cost incurred in
    nging the inventories to their
    esent location and condition.

    * Cost Measurement
    Techniques
    Standard Cost- produces of
    arge amount of small items.
    Retail Method- retailers with
    large amount turnover of
    ventories with similar profit
    margin.

    Net Realizable Value- is the


    alue of an asset that can be
    ealized upon the sale of the
    items.
    Any write down to to net
    realizable value should be
    ecognized as expense in the
    riod im which the write down
    occurs.
    ealized upon the sale of the
    items.
    Any write down to to net
    realizable value should be
    ecognized as expense in the
    riod im which the write down
    occurs.

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