INVENTORIES Inventories are items or goods in stocks principally intended for sale to customers. In a layman's terms, these are the goods being sold in a marketplace, malls, groceries, supermarts, convenience stores, and others alike. (source: from Google image search) But what really is the exact definition of inventory? In this blog, I would like to introduce to you the International Accounting Standard No. 2 (IAS 2) which covers the accounting for inventories. IAS 2 contains the requirements on how to account for most types of inventory - whether it is raw material, work in process, finished goods, or merchandise goods. For a more comprehensive discussion of inventory, you may also check the following applicable accounting standards: FOR LARGE/ LISTED ENTITIES FOR SMALL & MEDUIM-SIZED ENTITIES FOR MICRO-ENTITIES PAS 2 – Inventories Section 13 (PFRS for SMEs) – Inventories Section 8 (PFRS for SEs) – Inventories ...
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