ACCOUNTING STANDARD 2 VALUATION OF INVENTORY
ASSETS BASED ACCOUNTING STANDARDS UNIT 1: ACCOUNTING STANDARD 2 VALUATION OF INVENTORY After studying this unit, you will be able to comprehend the Definition of Inventory; Measurement of Inventories; What is included in Cost of Inventories; Exclusions from the Cost of Inventories; Cost Formulas; Techniques for the Measurement of Cost INVENTORY Inventory for sale in the Ordinary course of business ( Stock in trade , Finished goods ) in the process of production for such sale. NOTE - Inventories does not include Spare parts; Servicing equipment & stand by equipment stand by equipment - equipment which is kept for backup use , If primary equipment fails 4.Plant and equipment These items are accounted in Accounting Standard - 10 Measurement of Inventories Inventori es should be valued at lower of ...