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1 IAS 2 Inventories IAS 2 INVENTORIES FACT SHEET2 IAS 2 InventoriesThis fact sheet is based on existing requirements as at 31 December 2015, and it does not take into account recent standards and
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How to fill out 1 ias 2 inventories
How to fill out 1 ias 2 inventories
01
Read the guidelines provided in IAS 2 Inventories standard.
02
Start by gathering all the relevant information about the inventories.
03
Identify the specific types of inventory your company holds.
04
Determine the cost of each type of inventory.
05
Allocate the cost of inventory to appropriate categories.
06
Use a consistent valuation method for each category of inventory.
07
Record any impairments or write-downs as necessary.
08
Disclose the details of inventories in the financial statements.
Who needs 1 ias 2 inventories?
01
Any company that deals with the purchase or production of inventories needs to follow IAS 2 Inventories standard.
02
This includes manufacturing companies, retailers, wholesalers, and any other business that holds inventories.
03
Following the guidelines in IAS 2 ensures accurate and consistent reporting of inventories, which is crucial for financial transparency and decision-making.
04
Both publicly traded and privately held companies should comply with IAS 2 inventories for financial reporting purposes.
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