Choose a Current International Accounting Standard (Ias) or International...

Introduction There atomic number 18 mainly two accounting standards: principle-based and rule-based in the accounting system. This paper run short will chose one regulation in worldwide Accounting Standard, which is covered the regulations on enrolment. After the brief digest of IAS 2, there will be a discuss close to the IAS 2s characteristics. Summary of IAS 2 In summary, the objective of IAS 2 is to prescribe the accounting treatment for inventories. It provides guidance not notwithstanding for determining the cost of inventories and for subsequently recognising an expense, involving any write-down to earn realisable value, but also on the cost formulas that are employ to assign costs to inventories. The definition of Inventories in IAS 2 includes work in process (assets in the production process for sales agreement in the ordinary course of business), finished goods (assets held for sale in the ordinary course of business) and raw materials (materials and supplies that are consumed in production). [IAS 2.6] As the fundamental Principle of IAS 2, Inventories should be measured at the degrade of cost and net realisable value (which 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). [IAS 2.

9] The measurement of cost of inventories shall make all costs of purchase (including taxes, transport, and handling), costs of conversion (including primed(p) and variable manufacturing overheads) and other costs incurred in bringing the inventories to their salute location and condition. [IAS2.10] The cost of inventories shall be assigned by development the first-in, first-out (FIFO) or weighted average cost formula for items that are interchangeable. The LIFO formula, which had been allowed prior to the 2003 revision of IAS 2, is no longer allowed. However, for inventory items that are not interchangeable and goods or services produced and unintegrated for specific projects, specific costs are attributed to... If you want to call for a full essay, order it on our website: Ordercustompaper.com

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