IAS 2Chapter 1Lesson 1
Objective and scope of IAS 2
Step 1 of 8Learning objectives
Go deeper+2 deeper insights · +1 calculation · +1 point of attention
What IAS 2 is for and which inventories it applies to: two full exclusions (financial instruments; biological assets and agricultural produce at the point of harvest), two exclusions limited to the measurement requirements only (producers measuring at net realisable value under well-established practices; commodity broker-traders measuring at fair value less costs to sell), and the hand-over from IAS 41 to IAS 2 at the point of harvest.
20 minNot started
Learning objectives
- Explain the objective of IAS 2: which cost to carry as an asset, until when, and how it becomes an expense.
- Identify the inventories fully excluded from the scope of IAS 2 and the standard that applies instead.
- Distinguish a full exclusion from an exclusion limited to the measurement requirements, and draw the consequences.
- Determine the cost of harvested agricultural produce and then measure it under IAS 2.