Scope of IAS 2 and classification of inventories

• Items examined (description, quantities, location, condition) from the physical count and the item records

  TextRequired

• Nature of the entity's business and intended use of the items (sale, production, consumption, other use)

  TextRequired

• Nature of the items examined

  ChoiceRequired

  Goods purchased and held for resale

  Goods purchased and held for resale / Finished goods or work in progress / Materials and supplies to be consumed / Financial instrument / Biological asset or agricultural produce at the point of harvest / Harvested agricultural produce held after harvest / Other asset or cost

• Industry measurement practices (agricultural, forest or mineral producers) or commodity broker-trader activity

  Text

• Fair value less costs to sell at the point of harvest (harvested agricultural produce)

  Number

  Amount determined under IAS 41 at harvest; it is the cost of the harvested produce for the purposes of IAS 2 (para. 20). Leave blank if no harvested agricultural produce is examined.

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 2 §6IAS 2IAS 2

• Definition criteria examined

  ChecklistRequired

  • Goods held for sale in the ordinary course of business (merchandise, land and other property held for resale)
  • Entity's finished goods or work in progress produced for such sale
  • Materials or supplies to be consumed in the production process or in the rendering of services
  • Costs to fulfil a contract with a customer that give rise neither to inventories nor to assets within another standard: IFRS 15 applies
  • Net realisable value is entity-specific and may differ from fair value less costs to sell

IAS 2 §2IAS 2 §3IAS 2IAS 2 §5IAS 2 §20

• Exclusions and specific cases examined

  ChecklistRequired

  • Financial instruments excluded from the scope (IAS 32 and IFRS 9)
  • Biological assets related to agricultural activity and agricultural produce at the point of harvest excluded from the scope (IAS 41)
  • Harvested agricultural produce classified as inventories: cost equals fair value less costs to sell at harvest
  • Agricultural, forest or mineral producers measuring at net realisable value in accordance with well-established industry practices: excluded from the measurement requirements only
  • Commodity broker-traders measuring at fair value less costs to sell: excluded from the measurement requirements only
  • In both cases, changes in value recognised in profit or loss in the period of the change

  Exclusion from the scope sets aside the whole standard (para. 2); exclusion from the measurement requirements only (para. 3 to 5) leaves the items within IAS 2 inventories for the rest of the standard.

IAS 2 §2IAS 2 §3IAS 2 §6IAS 2 §9

• Classification retained for the items examined

  JudgmentRequired

  Commodity broker-trader's inventories excluded from the measurement requirements only: fair value less costs to sell

  Inventories within IAS 2: measured at the lower of cost and net realisable value / Producers' inventories excluded from the measurement requirements only: net realisable value under industry practices / Commodity broker-trader's inventories excluded from the measurement requirements only: fair value less costs to sell / Outside the scope of IAS 2 (financial instrument, biological asset, agricultural produce at the point of harvest) / Not inventory: other asset or expense, applicable standard to be identified

  The classification rests on the facts of the file (nature of the items, intended use, entity's business). The measurement principle of the lower of cost and net realisable value (para. 9) applies to inventories subject to the measurement requirements of IAS 2.

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The classification of the items is documentedPass
• The nature of the items is statedPass

Assets

0

Liabilities

0

Profit or loss

0

OCI

0

Equity

0

• Items examined (description, quantities, location, condition) from the physical count and the item records

  TextRequired

• Nature of the entity's business and intended use of the items (sale, production, consumption, other use)

  TextRequired

• Nature of the items examined

  ChoiceRequired

  Financial instrument

  Goods purchased and held for resale / Finished goods or work in progress / Materials and supplies to be consumed / Financial instrument / Biological asset or agricultural produce at the point of harvest / Harvested agricultural produce held after harvest / Other asset or cost

• Industry measurement practices (agricultural, forest or mineral producers) or commodity broker-trader activity

  Text

• Fair value less costs to sell at the point of harvest (harvested agricultural produce)

  Number

  Amount determined under IAS 41 at harvest; it is the cost of the harvested produce for the purposes of IAS 2 (para. 20). Leave blank if no harvested agricultural produce is examined.

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 2 §6IAS 2IAS 2

• Definition criteria examined

  ChecklistRequired

  • Goods held for sale in the ordinary course of business (merchandise, land and other property held for resale)
  • Entity's finished goods or work in progress produced for such sale
  • Materials or supplies to be consumed in the production process or in the rendering of services
  • Costs to fulfil a contract with a customer that give rise neither to inventories nor to assets within another standard: IFRS 15 applies
  • Net realisable value is entity-specific and may differ from fair value less costs to sell

IAS 2 §2IAS 2 §3IAS 2IAS 2 §5IAS 2 §20

• Exclusions and specific cases examined

  ChecklistRequired

  • Financial instruments excluded from the scope (IAS 32 and IFRS 9)
  • Biological assets related to agricultural activity and agricultural produce at the point of harvest excluded from the scope (IAS 41)
  • Harvested agricultural produce classified as inventories: cost equals fair value less costs to sell at harvest
  • Agricultural, forest or mineral producers measuring at net realisable value in accordance with well-established industry practices: excluded from the measurement requirements only
  • Commodity broker-traders measuring at fair value less costs to sell: excluded from the measurement requirements only
  • In both cases, changes in value recognised in profit or loss in the period of the change

  Exclusion from the scope sets aside the whole standard (para. 2); exclusion from the measurement requirements only (para. 3 to 5) leaves the items within IAS 2 inventories for the rest of the standard.

IAS 2 §2IAS 2 §3IAS 2 §6IAS 2 §9

• Classification retained for the items examined

  JudgmentRequired

  Outside the scope of IAS 2 (financial instrument, biological asset, agricultural produce at the point of harvest)

  Inventories within IAS 2: measured at the lower of cost and net realisable value / Producers' inventories excluded from the measurement requirements only: net realisable value under industry practices / Commodity broker-trader's inventories excluded from the measurement requirements only: fair value less costs to sell / Outside the scope of IAS 2 (financial instrument, biological asset, agricultural produce at the point of harvest) / Not inventory: other asset or expense, applicable standard to be identified

  The classification rests on the facts of the file (nature of the items, intended use, entity's business). The measurement principle of the lower of cost and net realisable value (para. 9) applies to inventories subject to the measurement requirements of IAS 2.

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The classification of the items is documentedPass
• The nature of the items is statedPass

Assets

0

Liabilities

0

Profit or loss

0

OCI

0

Equity

0

• Items examined (description, quantities, location, condition) from the physical count and the item records

  TextRequired

• Nature of the entity's business and intended use of the items (sale, production, consumption, other use)

  TextRequired

• Nature of the items examined

  ChoiceRequired

  Biological asset or agricultural produce at the point of harvest

  Goods purchased and held for resale / Finished goods or work in progress / Materials and supplies to be consumed / Financial instrument / Biological asset or agricultural produce at the point of harvest / Harvested agricultural produce held after harvest / Other asset or cost

• Industry measurement practices (agricultural, forest or mineral producers) or commodity broker-trader activity

  Text

• Fair value less costs to sell at the point of harvest (harvested agricultural produce)

  Number

  Amount determined under IAS 41 at harvest; it is the cost of the harvested produce for the purposes of IAS 2 (para. 20). Leave blank if no harvested agricultural produce is examined.

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 2 §6IAS 2IAS 2

• Definition criteria examined

  ChecklistRequired

  • Goods held for sale in the ordinary course of business (merchandise, land and other property held for resale)
  • Entity's finished goods or work in progress produced for such sale
  • Materials or supplies to be consumed in the production process or in the rendering of services
  • Costs to fulfil a contract with a customer that give rise neither to inventories nor to assets within another standard: IFRS 15 applies
  • Net realisable value is entity-specific and may differ from fair value less costs to sell

IAS 2 §2IAS 2 §3IAS 2IAS 2 §5IAS 2 §20

• Exclusions and specific cases examined

  ChecklistRequired

  • Financial instruments excluded from the scope (IAS 32 and IFRS 9)
  • Biological assets related to agricultural activity and agricultural produce at the point of harvest excluded from the scope (IAS 41)
  • Harvested agricultural produce classified as inventories: cost equals fair value less costs to sell at harvest
  • Agricultural, forest or mineral producers measuring at net realisable value in accordance with well-established industry practices: excluded from the measurement requirements only
  • Commodity broker-traders measuring at fair value less costs to sell: excluded from the measurement requirements only
  • In both cases, changes in value recognised in profit or loss in the period of the change

  Exclusion from the scope sets aside the whole standard (para. 2); exclusion from the measurement requirements only (para. 3 to 5) leaves the items within IAS 2 inventories for the rest of the standard.

IAS 2 §2IAS 2 §3IAS 2 §6IAS 2 §9

• Classification retained for the items examined

  JudgmentRequired

  Outside the scope of IAS 2 (financial instrument, biological asset, agricultural produce at the point of harvest)

  Inventories within IAS 2: measured at the lower of cost and net realisable value / Producers' inventories excluded from the measurement requirements only: net realisable value under industry practices / Commodity broker-trader's inventories excluded from the measurement requirements only: fair value less costs to sell / Outside the scope of IAS 2 (financial instrument, biological asset, agricultural produce at the point of harvest) / Not inventory: other asset or expense, applicable standard to be identified

  The classification rests on the facts of the file (nature of the items, intended use, entity's business). The measurement principle of the lower of cost and net realisable value (para. 9) applies to inventories subject to the measurement requirements of IAS 2.

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The classification of the items is documentedPass
• The nature of the items is statedPass

Assets

0

Liabilities

0

Profit or loss

0

OCI

0

Equity

0

• Items examined (description, quantities, location, condition) from the physical count and the item records

  TextRequired

• Nature of the entity's business and intended use of the items (sale, production, consumption, other use)

  TextRequired

• Nature of the items examined

  ChoiceRequired

  Harvested agricultural produce held after harvest

  Goods purchased and held for resale / Finished goods or work in progress / Materials and supplies to be consumed / Financial instrument / Biological asset or agricultural produce at the point of harvest / Harvested agricultural produce held after harvest / Other asset or cost

• Industry measurement practices (agricultural, forest or mineral producers) or commodity broker-trader activity

  Text

• Fair value less costs to sell at the point of harvest (harvested agricultural produce)

  Number

  150,000

  Amount determined under IAS 41 at harvest; it is the cost of the harvested produce for the purposes of IAS 2 (para. 20). Leave blank if no harvested agricultural produce is examined.

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 2 §6IAS 2IAS 2

• Definition criteria examined

  ChecklistRequired

  • Goods held for sale in the ordinary course of business (merchandise, land and other property held for resale)
  • Entity's finished goods or work in progress produced for such sale
  • Materials or supplies to be consumed in the production process or in the rendering of services
  • Costs to fulfil a contract with a customer that give rise neither to inventories nor to assets within another standard: IFRS 15 applies
  • Net realisable value is entity-specific and may differ from fair value less costs to sell

IAS 2 §2IAS 2 §3IAS 2IAS 2 §5IAS 2 §20

• Exclusions and specific cases examined

  ChecklistRequired

  • Financial instruments excluded from the scope (IAS 32 and IFRS 9)
  • Biological assets related to agricultural activity and agricultural produce at the point of harvest excluded from the scope (IAS 41)
  • Harvested agricultural produce classified as inventories: cost equals fair value less costs to sell at harvest
  • Agricultural, forest or mineral producers measuring at net realisable value in accordance with well-established industry practices: excluded from the measurement requirements only
  • Commodity broker-traders measuring at fair value less costs to sell: excluded from the measurement requirements only
  • In both cases, changes in value recognised in profit or loss in the period of the change

  Exclusion from the scope sets aside the whole standard (para. 2); exclusion from the measurement requirements only (para. 3 to 5) leaves the items within IAS 2 inventories for the rest of the standard.

IAS 2 §2IAS 2 §3IAS 2 §6IAS 2 §9

• Classification retained for the items examined

  JudgmentRequired

  Inventories within IAS 2: measured at the lower of cost and net realisable value

  Inventories within IAS 2: measured at the lower of cost and net realisable value / Producers' inventories excluded from the measurement requirements only: net realisable value under industry practices / Commodity broker-trader's inventories excluded from the measurement requirements only: fair value less costs to sell / Outside the scope of IAS 2 (financial instrument, biological asset, agricultural produce at the point of harvest) / Not inventory: other asset or expense, applicable standard to be identified

  The classification rests on the facts of the file (nature of the items, intended use, entity's business). The measurement principle of the lower of cost and net realisable value (para. 9) applies to inventories subject to the measurement requirements of IAS 2.

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The classification of the items is documentedPass
• The nature of the items is statedPass

Assets

0

Liabilities

0

Profit or loss

0

OCI

0

Equity

0

• Items examined (description, quantities, location, condition) from the physical count and the item records

  TextRequired

• Nature of the entity's business and intended use of the items (sale, production, consumption, other use)

  TextRequired

• Nature of the items examined

  ChoiceRequired

  Finished goods or work in progress

  Goods purchased and held for resale / Finished goods or work in progress / Materials and supplies to be consumed / Financial instrument / Biological asset or agricultural produce at the point of harvest / Harvested agricultural produce held after harvest / Other asset or cost

• Industry measurement practices (agricultural, forest or mineral producers) or commodity broker-trader activity

  Text

• Fair value less costs to sell at the point of harvest (harvested agricultural produce)

  Number

  Amount determined under IAS 41 at harvest; it is the cost of the harvested produce for the purposes of IAS 2 (para. 20). Leave blank if no harvested agricultural produce is examined.

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 2 §6IAS 2IAS 2

• Definition criteria examined

  ChecklistRequired

  • Goods held for sale in the ordinary course of business (merchandise, land and other property held for resale)
  • Entity's finished goods or work in progress produced for such sale
  • Materials or supplies to be consumed in the production process or in the rendering of services
  • Costs to fulfil a contract with a customer that give rise neither to inventories nor to assets within another standard: IFRS 15 applies
  • Net realisable value is entity-specific and may differ from fair value less costs to sell

IAS 2 §2IAS 2 §3IAS 2IAS 2 §5IAS 2 §20

• Exclusions and specific cases examined

  ChecklistRequired

  • Financial instruments excluded from the scope (IAS 32 and IFRS 9)
  • Biological assets related to agricultural activity and agricultural produce at the point of harvest excluded from the scope (IAS 41)
  • Harvested agricultural produce classified as inventories: cost equals fair value less costs to sell at harvest
  • Agricultural, forest or mineral producers measuring at net realisable value in accordance with well-established industry practices: excluded from the measurement requirements only
  • Commodity broker-traders measuring at fair value less costs to sell: excluded from the measurement requirements only
  • In both cases, changes in value recognised in profit or loss in the period of the change

  Exclusion from the scope sets aside the whole standard (para. 2); exclusion from the measurement requirements only (para. 3 to 5) leaves the items within IAS 2 inventories for the rest of the standard.

IAS 2 §2IAS 2 §3IAS 2 §6IAS 2 §9

• Classification retained for the items examined

  JudgmentRequired

  Inventories within IAS 2: measured at the lower of cost and net realisable value

  Inventories within IAS 2: measured at the lower of cost and net realisable value / Producers' inventories excluded from the measurement requirements only: net realisable value under industry practices / Commodity broker-trader's inventories excluded from the measurement requirements only: fair value less costs to sell / Outside the scope of IAS 2 (financial instrument, biological asset, agricultural produce at the point of harvest) / Not inventory: other asset or expense, applicable standard to be identified

  The classification rests on the facts of the file (nature of the items, intended use, entity's business). The measurement principle of the lower of cost and net realisable value (para. 9) applies to inventories subject to the measurement requirements of IAS 2.

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The classification of the items is documentedPass
• The nature of the items is statedPass

Assets

0

Liabilities

0

Profit or loss

0

OCI

0

Equity

0

• Items examined (description, quantities, location, condition) from the physical count and the item records

  TextRequired

• Nature of the entity's business and intended use of the items (sale, production, consumption, other use)

  TextRequired

• Nature of the items examined

  ChoiceRequired

  Other asset or cost

  Goods purchased and held for resale / Finished goods or work in progress / Materials and supplies to be consumed / Financial instrument / Biological asset or agricultural produce at the point of harvest / Harvested agricultural produce held after harvest / Other asset or cost

• Industry measurement practices (agricultural, forest or mineral producers) or commodity broker-trader activity

  Text

• Fair value less costs to sell at the point of harvest (harvested agricultural produce)

  Number

  Amount determined under IAS 41 at harvest; it is the cost of the harvested produce for the purposes of IAS 2 (para. 20). Leave blank if no harvested agricultural produce is examined.

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 2 §6IAS 2IAS 2

• Definition criteria examined

  ChecklistRequired

  • Goods held for sale in the ordinary course of business (merchandise, land and other property held for resale)
  • Entity's finished goods or work in progress produced for such sale
  • Materials or supplies to be consumed in the production process or in the rendering of services
  • Costs to fulfil a contract with a customer that give rise neither to inventories nor to assets within another standard: IFRS 15 applies
  • Net realisable value is entity-specific and may differ from fair value less costs to sell

IAS 2 §2IAS 2 §3IAS 2IAS 2 §5IAS 2 §20

• Exclusions and specific cases examined

  ChecklistRequired

  • Financial instruments excluded from the scope (IAS 32 and IFRS 9)
  • Biological assets related to agricultural activity and agricultural produce at the point of harvest excluded from the scope (IAS 41)
  • Harvested agricultural produce classified as inventories: cost equals fair value less costs to sell at harvest
  • Agricultural, forest or mineral producers measuring at net realisable value in accordance with well-established industry practices: excluded from the measurement requirements only
  • Commodity broker-traders measuring at fair value less costs to sell: excluded from the measurement requirements only
  • In both cases, changes in value recognised in profit or loss in the period of the change

  Exclusion from the scope sets aside the whole standard (para. 2); exclusion from the measurement requirements only (para. 3 to 5) leaves the items within IAS 2 inventories for the rest of the standard.

IAS 2 §2IAS 2 §3IAS 2 §6IAS 2 §9

• Classification retained for the items examined

  JudgmentRequired

  Not inventory: other asset or expense, applicable standard to be identified

  Inventories within IAS 2: measured at the lower of cost and net realisable value / Producers' inventories excluded from the measurement requirements only: net realisable value under industry practices / Commodity broker-trader's inventories excluded from the measurement requirements only: fair value less costs to sell / Outside the scope of IAS 2 (financial instrument, biological asset, agricultural produce at the point of harvest) / Not inventory: other asset or expense, applicable standard to be identified

  The classification rests on the facts of the file (nature of the items, intended use, entity's business). The measurement principle of the lower of cost and net realisable value (para. 9) applies to inventories subject to the measurement requirements of IAS 2.

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The classification of the items is documentedPass
• The nature of the items is statedPass

Assets

0

Liabilities

0

Profit or loss

0

OCI

0

Equity

0

• Items examined (description, quantities, location, condition) from the physical count and the item records

  TextRequired

• Nature of the entity's business and intended use of the items (sale, production, consumption, other use)

  TextRequired

• Nature of the items examined

  ChoiceRequired

  Biological asset or agricultural produce at the point of harvest

  Goods purchased and held for resale / Finished goods or work in progress / Materials and supplies to be consumed / Financial instrument / Biological asset or agricultural produce at the point of harvest / Harvested agricultural produce held after harvest / Other asset or cost

• Industry measurement practices (agricultural, forest or mineral producers) or commodity broker-trader activity

  Text

• Fair value less costs to sell at the point of harvest (harvested agricultural produce)

  Number

  Amount determined under IAS 41 at harvest; it is the cost of the harvested produce for the purposes of IAS 2 (para. 20). Leave blank if no harvested agricultural produce is examined.

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 2 §6IAS 2IAS 2

• Definition criteria examined

  ChecklistRequired

  • Goods held for sale in the ordinary course of business (merchandise, land and other property held for resale)
  • Entity's finished goods or work in progress produced for such sale
  • Materials or supplies to be consumed in the production process or in the rendering of services
  • Costs to fulfil a contract with a customer that give rise neither to inventories nor to assets within another standard: IFRS 15 applies
  • Net realisable value is entity-specific and may differ from fair value less costs to sell

IAS 2 §2IAS 2 §3IAS 2IAS 2 §5IAS 2 §20

• Exclusions and specific cases examined

  ChecklistRequired

  • Financial instruments excluded from the scope (IAS 32 and IFRS 9)
  • Biological assets related to agricultural activity and agricultural produce at the point of harvest excluded from the scope (IAS 41)
  • Harvested agricultural produce classified as inventories: cost equals fair value less costs to sell at harvest
  • Agricultural, forest or mineral producers measuring at net realisable value in accordance with well-established industry practices: excluded from the measurement requirements only
  • Commodity broker-traders measuring at fair value less costs to sell: excluded from the measurement requirements only
  • In both cases, changes in value recognised in profit or loss in the period of the change

  Exclusion from the scope sets aside the whole standard (para. 2); exclusion from the measurement requirements only (para. 3 to 5) leaves the items within IAS 2 inventories for the rest of the standard.

IAS 2 §2IAS 2 §3IAS 2 §6IAS 2 §9

• Classification retained for the items examined

  JudgmentRequired

  Outside the scope of IAS 2 (financial instrument, biological asset, agricultural produce at the point of harvest)

  Inventories within IAS 2: measured at the lower of cost and net realisable value / Producers' inventories excluded from the measurement requirements only: net realisable value under industry practices / Commodity broker-trader's inventories excluded from the measurement requirements only: fair value less costs to sell / Outside the scope of IAS 2 (financial instrument, biological asset, agricultural produce at the point of harvest) / Not inventory: other asset or expense, applicable standard to be identified

  The classification rests on the facts of the file (nature of the items, intended use, entity's business). The measurement principle of the lower of cost and net realisable value (para. 9) applies to inventories subject to the measurement requirements of IAS 2.

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The classification of the items is documentedPass
• The nature of the items is statedPass

Assets

0

Liabilities

0

Profit or loss

0

OCI

0

Equity

0

• Items examined (description, quantities, location, condition) from the physical count and the item records

  TextRequired

• Nature of the entity's business and intended use of the items (sale, production, consumption, other use)

  TextRequired

• Nature of the items examined

  ChoiceRequired

  Harvested agricultural produce held after harvest

  Goods purchased and held for resale / Finished goods or work in progress / Materials and supplies to be consumed / Financial instrument / Biological asset or agricultural produce at the point of harvest / Harvested agricultural produce held after harvest / Other asset or cost

• Industry measurement practices (agricultural, forest or mineral producers) or commodity broker-trader activity

  Text

• Fair value less costs to sell at the point of harvest (harvested agricultural produce)

  Number

  240,000

  Amount determined under IAS 41 at harvest; it is the cost of the harvested produce for the purposes of IAS 2 (para. 20). Leave blank if no harvested agricultural produce is examined.

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 2 §6IAS 2IAS 2

• Definition criteria examined

  ChecklistRequired

  • Goods held for sale in the ordinary course of business (merchandise, land and other property held for resale)
  • Entity's finished goods or work in progress produced for such sale
  • Materials or supplies to be consumed in the production process or in the rendering of services
  • Costs to fulfil a contract with a customer that give rise neither to inventories nor to assets within another standard: IFRS 15 applies
  • Net realisable value is entity-specific and may differ from fair value less costs to sell

IAS 2 §2IAS 2 §3IAS 2IAS 2 §5IAS 2 §20

• Exclusions and specific cases examined

  ChecklistRequired

  • Financial instruments excluded from the scope (IAS 32 and IFRS 9)
  • Biological assets related to agricultural activity and agricultural produce at the point of harvest excluded from the scope (IAS 41)
  • Harvested agricultural produce classified as inventories: cost equals fair value less costs to sell at harvest
  • Agricultural, forest or mineral producers measuring at net realisable value in accordance with well-established industry practices: excluded from the measurement requirements only
  • Commodity broker-traders measuring at fair value less costs to sell: excluded from the measurement requirements only
  • In both cases, changes in value recognised in profit or loss in the period of the change

  Exclusion from the scope sets aside the whole standard (para. 2); exclusion from the measurement requirements only (para. 3 to 5) leaves the items within IAS 2 inventories for the rest of the standard.

IAS 2 §2IAS 2 §3IAS 2 §6IAS 2 §9

• Classification retained for the items examined

  JudgmentRequired

  Inventories within IAS 2: measured at the lower of cost and net realisable value

  Inventories within IAS 2: measured at the lower of cost and net realisable value / Producers' inventories excluded from the measurement requirements only: net realisable value under industry practices / Commodity broker-trader's inventories excluded from the measurement requirements only: fair value less costs to sell / Outside the scope of IAS 2 (financial instrument, biological asset, agricultural produce at the point of harvest) / Not inventory: other asset or expense, applicable standard to be identified

  The classification rests on the facts of the file (nature of the items, intended use, entity's business). The measurement principle of the lower of cost and net realisable value (para. 9) applies to inventories subject to the measurement requirements of IAS 2.

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The classification of the items is documentedPass
• The nature of the items is statedPass

Assets

0

Liabilities

0

Profit or loss

0

OCI

0

Equity

0

• Items examined (description, quantities, location, condition) from the physical count and the item records

  TextRequired

• Nature of the entity's business and intended use of the items (sale, production, consumption, other use)

  TextRequired

• Nature of the items examined

  ChoiceRequired

  Financial instrument

  Goods purchased and held for resale / Finished goods or work in progress / Materials and supplies to be consumed / Financial instrument / Biological asset or agricultural produce at the point of harvest / Harvested agricultural produce held after harvest / Other asset or cost

• Industry measurement practices (agricultural, forest or mineral producers) or commodity broker-trader activity

  Text

• Fair value less costs to sell at the point of harvest (harvested agricultural produce)

  Number

  Amount determined under IAS 41 at harvest; it is the cost of the harvested produce for the purposes of IAS 2 (para. 20). Leave blank if no harvested agricultural produce is examined.

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 2 §6IAS 2IAS 2

• Definition criteria examined

  ChecklistRequired

  • Goods held for sale in the ordinary course of business (merchandise, land and other property held for resale)
  • Entity's finished goods or work in progress produced for such sale
  • Materials or supplies to be consumed in the production process or in the rendering of services
  • Costs to fulfil a contract with a customer that give rise neither to inventories nor to assets within another standard: IFRS 15 applies
  • Net realisable value is entity-specific and may differ from fair value less costs to sell

IAS 2 §2IAS 2 §3IAS 2IAS 2 §5IAS 2 §20

• Exclusions and specific cases examined

  ChecklistRequired

  • Financial instruments excluded from the scope (IAS 32 and IFRS 9)
  • Biological assets related to agricultural activity and agricultural produce at the point of harvest excluded from the scope (IAS 41)
  • Harvested agricultural produce classified as inventories: cost equals fair value less costs to sell at harvest
  • Agricultural, forest or mineral producers measuring at net realisable value in accordance with well-established industry practices: excluded from the measurement requirements only
  • Commodity broker-traders measuring at fair value less costs to sell: excluded from the measurement requirements only
  • In both cases, changes in value recognised in profit or loss in the period of the change

  Exclusion from the scope sets aside the whole standard (para. 2); exclusion from the measurement requirements only (para. 3 to 5) leaves the items within IAS 2 inventories for the rest of the standard.

IAS 2 §2IAS 2 §3IAS 2 §6IAS 2 §9

• Classification retained for the items examined

  JudgmentRequired

  Outside the scope of IAS 2 (financial instrument, biological asset, agricultural produce at the point of harvest)

  Inventories within IAS 2: measured at the lower of cost and net realisable value / Producers' inventories excluded from the measurement requirements only: net realisable value under industry practices / Commodity broker-trader's inventories excluded from the measurement requirements only: fair value less costs to sell / Outside the scope of IAS 2 (financial instrument, biological asset, agricultural produce at the point of harvest) / Not inventory: other asset or expense, applicable standard to be identified

  The classification rests on the facts of the file (nature of the items, intended use, entity's business). The measurement principle of the lower of cost and net realisable value (para. 9) applies to inventories subject to the measurement requirements of IAS 2.

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The classification of the items is documentedPass
• The nature of the items is statedPass

Assets

0

Liabilities

0

Profit or loss

0

OCI

0

Equity

0

• Items examined (description, quantities, location, condition) from the physical count and the item records

  TextRequired

• Nature of the entity's business and intended use of the items (sale, production, consumption, other use)

  TextRequired

• Nature of the items examined

  ChoiceRequired

  Goods purchased and held for resale

  Goods purchased and held for resale / Finished goods or work in progress / Materials and supplies to be consumed / Financial instrument / Biological asset or agricultural produce at the point of harvest / Harvested agricultural produce held after harvest / Other asset or cost

• Industry measurement practices (agricultural, forest or mineral producers) or commodity broker-trader activity

  Text

• Fair value less costs to sell at the point of harvest (harvested agricultural produce)

  Number

  Amount determined under IAS 41 at harvest; it is the cost of the harvested produce for the purposes of IAS 2 (para. 20). Leave blank if no harvested agricultural produce is examined.

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 2 §6IAS 2IAS 2

• Definition criteria examined

  ChecklistRequired

  • Goods held for sale in the ordinary course of business (merchandise, land and other property held for resale)
  • Entity's finished goods or work in progress produced for such sale
  • Materials or supplies to be consumed in the production process or in the rendering of services
  • Costs to fulfil a contract with a customer that give rise neither to inventories nor to assets within another standard: IFRS 15 applies
  • Net realisable value is entity-specific and may differ from fair value less costs to sell

IAS 2 §2IAS 2 §3IAS 2IAS 2 §5IAS 2 §20

• Exclusions and specific cases examined

  ChecklistRequired

  • Financial instruments excluded from the scope (IAS 32 and IFRS 9)
  • Biological assets related to agricultural activity and agricultural produce at the point of harvest excluded from the scope (IAS 41)
  • Harvested agricultural produce classified as inventories: cost equals fair value less costs to sell at harvest
  • Agricultural, forest or mineral producers measuring at net realisable value in accordance with well-established industry practices: excluded from the measurement requirements only
  • Commodity broker-traders measuring at fair value less costs to sell: excluded from the measurement requirements only
  • In both cases, changes in value recognised in profit or loss in the period of the change

  Exclusion from the scope sets aside the whole standard (para. 2); exclusion from the measurement requirements only (para. 3 to 5) leaves the items within IAS 2 inventories for the rest of the standard.

IAS 2 §2IAS 2 §3IAS 2 §6IAS 2 §9

• Classification retained for the items examined

  JudgmentRequired

  Inventories within IAS 2: measured at the lower of cost and net realisable value

  Inventories within IAS 2: measured at the lower of cost and net realisable value / Producers' inventories excluded from the measurement requirements only: net realisable value under industry practices / Commodity broker-trader's inventories excluded from the measurement requirements only: fair value less costs to sell / Outside the scope of IAS 2 (financial instrument, biological asset, agricultural produce at the point of harvest) / Not inventory: other asset or expense, applicable standard to be identified

  The classification rests on the facts of the file (nature of the items, intended use, entity's business). The measurement principle of the lower of cost and net realisable value (para. 9) applies to inventories subject to the measurement requirements of IAS 2.

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The classification of the items is documentedPass
• The nature of the items is statedPass

Assets

0

Liabilities

0

Profit or loss

0

OCI

0

Equity

0

• Items examined (description, quantities, location, condition) from the physical count and the item records

  TextRequired

• Nature of the entity's business and intended use of the items (sale, production, consumption, other use)

  TextRequired

• Nature of the items examined

  ChoiceRequired

  Finished goods or work in progress

  Goods purchased and held for resale / Finished goods or work in progress / Materials and supplies to be consumed / Financial instrument / Biological asset or agricultural produce at the point of harvest / Harvested agricultural produce held after harvest / Other asset or cost

• Industry measurement practices (agricultural, forest or mineral producers) or commodity broker-trader activity

  Text

• Fair value less costs to sell at the point of harvest (harvested agricultural produce)

  Number

  Amount determined under IAS 41 at harvest; it is the cost of the harvested produce for the purposes of IAS 2 (para. 20). Leave blank if no harvested agricultural produce is examined.

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 2 §6IAS 2IAS 2

• Definition criteria examined

  ChecklistRequired

  • Goods held for sale in the ordinary course of business (merchandise, land and other property held for resale)
  • Entity's finished goods or work in progress produced for such sale
  • Materials or supplies to be consumed in the production process or in the rendering of services
  • Costs to fulfil a contract with a customer that give rise neither to inventories nor to assets within another standard: IFRS 15 applies
  • Net realisable value is entity-specific and may differ from fair value less costs to sell

IAS 2 §2IAS 2 §3IAS 2IAS 2 §5IAS 2 §20

• Exclusions and specific cases examined

  ChecklistRequired

  • Financial instruments excluded from the scope (IAS 32 and IFRS 9)
  • Biological assets related to agricultural activity and agricultural produce at the point of harvest excluded from the scope (IAS 41)
  • Harvested agricultural produce classified as inventories: cost equals fair value less costs to sell at harvest
  • Agricultural, forest or mineral producers measuring at net realisable value in accordance with well-established industry practices: excluded from the measurement requirements only
  • Commodity broker-traders measuring at fair value less costs to sell: excluded from the measurement requirements only
  • In both cases, changes in value recognised in profit or loss in the period of the change

  Exclusion from the scope sets aside the whole standard (para. 2); exclusion from the measurement requirements only (para. 3 to 5) leaves the items within IAS 2 inventories for the rest of the standard.

IAS 2 §2IAS 2 §3IAS 2 §6IAS 2 §9

• Classification retained for the items examined

  JudgmentRequired

  Inventories within IAS 2: measured at the lower of cost and net realisable value

  Inventories within IAS 2: measured at the lower of cost and net realisable value / Producers' inventories excluded from the measurement requirements only: net realisable value under industry practices / Commodity broker-trader's inventories excluded from the measurement requirements only: fair value less costs to sell / Outside the scope of IAS 2 (financial instrument, biological asset, agricultural produce at the point of harvest) / Not inventory: other asset or expense, applicable standard to be identified

  The classification rests on the facts of the file (nature of the items, intended use, entity's business). The measurement principle of the lower of cost and net realisable value (para. 9) applies to inventories subject to the measurement requirements of IAS 2.

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The classification of the items is documentedPass
• The nature of the items is statedPass

Assets

0

Liabilities

0

Profit or loss

0

OCI

0

Equity

0

• Items examined (description, quantities, location, condition) from the physical count and the item records

  TextRequired

• Nature of the entity's business and intended use of the items (sale, production, consumption, other use)

  TextRequired

• Nature of the items examined

  ChoiceRequired

  Materials and supplies to be consumed

  Goods purchased and held for resale / Finished goods or work in progress / Materials and supplies to be consumed / Financial instrument / Biological asset or agricultural produce at the point of harvest / Harvested agricultural produce held after harvest / Other asset or cost

• Industry measurement practices (agricultural, forest or mineral producers) or commodity broker-trader activity

  Text

• Fair value less costs to sell at the point of harvest (harvested agricultural produce)

  Number

  Amount determined under IAS 41 at harvest; it is the cost of the harvested produce for the purposes of IAS 2 (para. 20). Leave blank if no harvested agricultural produce is examined.

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 2 §6IAS 2IAS 2

• Definition criteria examined

  ChecklistRequired

  • Goods held for sale in the ordinary course of business (merchandise, land and other property held for resale)
  • Entity's finished goods or work in progress produced for such sale
  • Materials or supplies to be consumed in the production process or in the rendering of services
  • Costs to fulfil a contract with a customer that give rise neither to inventories nor to assets within another standard: IFRS 15 applies
  • Net realisable value is entity-specific and may differ from fair value less costs to sell

IAS 2 §2IAS 2 §3IAS 2IAS 2 §5IAS 2 §20

• Exclusions and specific cases examined

  ChecklistRequired

  • Financial instruments excluded from the scope (IAS 32 and IFRS 9)
  • Biological assets related to agricultural activity and agricultural produce at the point of harvest excluded from the scope (IAS 41)
  • Harvested agricultural produce classified as inventories: cost equals fair value less costs to sell at harvest
  • Agricultural, forest or mineral producers measuring at net realisable value in accordance with well-established industry practices: excluded from the measurement requirements only
  • Commodity broker-traders measuring at fair value less costs to sell: excluded from the measurement requirements only
  • In both cases, changes in value recognised in profit or loss in the period of the change

  Exclusion from the scope sets aside the whole standard (para. 2); exclusion from the measurement requirements only (para. 3 to 5) leaves the items within IAS 2 inventories for the rest of the standard.

IAS 2 §2IAS 2 §3IAS 2 §6IAS 2 §9

• Classification retained for the items examined

  JudgmentRequired

  Inventories within IAS 2: measured at the lower of cost and net realisable value

  Inventories within IAS 2: measured at the lower of cost and net realisable value / Producers' inventories excluded from the measurement requirements only: net realisable value under industry practices / Commodity broker-trader's inventories excluded from the measurement requirements only: fair value less costs to sell / Outside the scope of IAS 2 (financial instrument, biological asset, agricultural produce at the point of harvest) / Not inventory: other asset or expense, applicable standard to be identified

  The classification rests on the facts of the file (nature of the items, intended use, entity's business). The measurement principle of the lower of cost and net realisable value (para. 9) applies to inventories subject to the measurement requirements of IAS 2.

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The classification of the items is documentedPass
• The nature of the items is statedPass

Assets

0

Liabilities

0

Profit or loss

0

OCI

0

Equity

0

• Items examined (description, quantities, location, condition) from the physical count and the item records

  TextRequired

• Nature of the entity's business and intended use of the items (sale, production, consumption, other use)

  TextRequired

• Nature of the items examined

  ChoiceRequired

  Other asset or cost

  Goods purchased and held for resale / Finished goods or work in progress / Materials and supplies to be consumed / Financial instrument / Biological asset or agricultural produce at the point of harvest / Harvested agricultural produce held after harvest / Other asset or cost

• Industry measurement practices (agricultural, forest or mineral producers) or commodity broker-trader activity

  Text

• Fair value less costs to sell at the point of harvest (harvested agricultural produce)

  Number

  Amount determined under IAS 41 at harvest; it is the cost of the harvested produce for the purposes of IAS 2 (para. 20). Leave blank if no harvested agricultural produce is examined.

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 2 §6IAS 2IAS 2

• Definition criteria examined

  ChecklistRequired

  • Goods held for sale in the ordinary course of business (merchandise, land and other property held for resale)
  • Entity's finished goods or work in progress produced for such sale
  • Materials or supplies to be consumed in the production process or in the rendering of services
  • Costs to fulfil a contract with a customer that give rise neither to inventories nor to assets within another standard: IFRS 15 applies
  • Net realisable value is entity-specific and may differ from fair value less costs to sell

IAS 2 §2IAS 2 §3IAS 2IAS 2 §5IAS 2 §20

• Exclusions and specific cases examined

  ChecklistRequired

  • Financial instruments excluded from the scope (IAS 32 and IFRS 9)
  • Biological assets related to agricultural activity and agricultural produce at the point of harvest excluded from the scope (IAS 41)
  • Harvested agricultural produce classified as inventories: cost equals fair value less costs to sell at harvest
  • Agricultural, forest or mineral producers measuring at net realisable value in accordance with well-established industry practices: excluded from the measurement requirements only
  • Commodity broker-traders measuring at fair value less costs to sell: excluded from the measurement requirements only
  • In both cases, changes in value recognised in profit or loss in the period of the change

  Exclusion from the scope sets aside the whole standard (para. 2); exclusion from the measurement requirements only (para. 3 to 5) leaves the items within IAS 2 inventories for the rest of the standard.

IAS 2 §2IAS 2 §3IAS 2 §6IAS 2 §9

• Classification retained for the items examined

  JudgmentRequired

  Not inventory: other asset or expense, applicable standard to be identified

  Inventories within IAS 2: measured at the lower of cost and net realisable value / Producers' inventories excluded from the measurement requirements only: net realisable value under industry practices / Commodity broker-trader's inventories excluded from the measurement requirements only: fair value less costs to sell / Outside the scope of IAS 2 (financial instrument, biological asset, agricultural produce at the point of harvest) / Not inventory: other asset or expense, applicable standard to be identified

  The classification rests on the facts of the file (nature of the items, intended use, entity's business). The measurement principle of the lower of cost and net realisable value (para. 9) applies to inventories subject to the measurement requirements of IAS 2.

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The classification of the items is documentedPass
• The nature of the items is statedPass

Assets

0

Liabilities

0

Profit or loss

0

OCI

0

Equity

0