Quick Facts
This standard applies to all inventories except..
What is
a) financial instruments
b) biological assets related to agriculture at point of harvest
Inventories are measured at..
What is
The lower of cost and the net realizable value
TRUE or FALSE
The financial statements must disclose the amount of any write-down of inventories recognised as an expense in the period
What is
TRUE
Two of the three types of costs of inventories are..
What is
1) Cost of Purchase
2) Cost of Conversion
3) Other costs incurred in bringing the inventories to their present location and condition
Net Realizable value is..
What is
the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale
TRUE or FALSE
The financial statements must disclose the carrying amount of inventories carried at cost
What is
FALSE
correct answer- the carrying amount of inventories carried at fair value less costs to sell
One of the cost formulas you can use is..
What is
1) First-In, First-Out (FIFO)
2) Weighted Average
Two types of techniques for measurement of cost are..
What is
1) Standard Cost Method
2) Retail Method
Three things that must be disclosed in the financial statements are..
What is
(a)the accounting policies adopted in measuring inventories, including the cost formula used
(b)the total carrying amount of inventories and the carrying amount in classifications appropriate to the entity
(c)the carrying amount of inventories carried at fair value less costs to sell
(d)the amount of inventories recognised as an expense during the period
(e)the amount of any write-down of inventories recognised as an expense in the period
(f)the amount of any reversal of any write-down that is recognised as a reduction in the amount of inventories recognised as expense in the period
(g)the circumstances or events that led to the reversal of a write-down of inventories
(h)the carrying amount of inventories pledged as security for liabilities.