{"entries":[{"key":"LX.IAS16.000133","source":"V2","standard_id":"IAS2","concept_ids":["IAS16.DEPRECIATION.CHARGE_RECOGNITION"],"dimension":"CALCULATION","format":"CALCULATION","context":"FOOD","tested_point":"CHARGE_THROUGH_INVENTORIES","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS16.000011","review":{"standard_id":"IAS16","lesson_id":"LS.IAS16.000011","section_id":"charge-entry"},"references":["IAS 16 §48","IAS 16 §49","IAS 2 §12"],"exercise":{"prompt":{"fr":"","en":"Case data: a cannery depreciates its production lines by EUR 300,000 for the year, at normal capacity. 60% of the year's output has been sold; the rest is in inventory at the reporting date. Calculate where the charge sits at the reporting date.","es":""},"explanation":{"fr":"","en":"Approach: 1) the production lines are used to make inventories: their depreciation is part of the costs of conversion (IAS 16, para. 49); (IAS 2, para. 12); 2) it therefore reaches profit or loss only on sale; 3) 300,000 × 60% = 180,000 in cost of sales; 4) the balance, 120,000, stays in closing inventories (IAS 16, para. 48). Activity is normal, so all the depreciation is absorbed. Main trap: expensing the 300,000 as soon as it is incurred. Rule to remember: the depreciation of a production asset is included in the cost of inventories and reaches profit or loss as the goods are sold (IAS 16, para. 49).","es":""},"common_error":{"fr":"","en":"Expensing the full 300,000 in the year as soon as it is recognised.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Depreciation of production lines","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Share of output sold","es":""},"value":"60","unit":"PERCENT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Amount in cost of sales (profit or loss)","es":""},"answer":180000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Amount remaining in closing inventories","es":""},"answer":120000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS16.000134","source":"V2","standard_id":"IAS2","concept_ids":["IAS16.DEPRECIATION.CHARGE_RECOGNITION"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"PHARMA","tested_point":"CHARGE_SPLIT_INVENTORY_EXPENSE","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS16.000011","review":{"standard_id":"IAS16","lesson_id":"LS.IAS16.000011","section_id":"charge-entry"},"references":["IAS 16 §48","IAS 16 §49","IAS 2 §12"],"exercise":{"prompt":{"fr":"","en":"Case data: the building of a pharmaceutical site is depreciated by EUR 120,000 a year. Based on floor areas (case data), 80% of the building houses production at normal capacity and 20% administrative offices. Teaching assumption: the production share is posted directly to inventories. Record the depreciation entry.","es":""},"explanation":{"fr":"","en":"Approach: 1) identify the use: 80% of the building houses production at normal capacity, 20% administration; 2) the production share, 120,000 × 80% = 96,000, is added to inventory cost (IAS 16, para. 49); (IAS 2, para. 12); 3) the administrative share, 120,000 × 20% = 24,000, is an expense of the period (IAS 16, para. 48); 4) the total credit of 120,000 goes to accumulated depreciation. Check: debits 96,000 + 24,000 = credit 120,000. Allocating by floor area is case data, not imposed by the standard, and posting directly to inventories is a teaching assumption. Main trap: expensing everything. Rule to remember: depreciation follows the use of the asset, inventories for the production share, profit or loss for the rest.","es":""},"common_error":{"fr":"","en":"Expensing the whole EUR 120,000 depreciation charge without distinguishing the part of the building that houses production.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"INVENTORIES","text":{"fr":"","en":"Inventories (production costs)","es":""}},{"id":"DEP_EXP","text":{"fr":"","en":"Depreciation expense (profit or loss)","es":""}},{"id":"ACC_DEP","text":{"fr":"","en":"Accumulated depreciation","es":""}},{"id":"COST_OF_SALES","text":{"fr":"","en":"Cost of sales (profit or loss)","es":""}}],"lines":[{"id":"L1","account":"INVENTORIES","side":"DEBIT","amount":96000},{"id":"L2","account":"DEP_EXP","side":"DEBIT","amount":24000},{"id":"L3","account":"ACC_DEP","side":"CREDIT","amount":120000,"given":["account","side","amount"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS16.000135","source":"V2","standard_id":"IAS2","concept_ids":["IAS16.DEPRECIATION.CHARGE_RECOGNITION"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"AUTOMOTIVE","tested_point":"UNDER_ACTIVITY_DEPRECIATION_EXPENSED","difficulty":"INTERMEDIATE","estimated_time_s":45,"lesson_id":"LS.IAS16.000011","review":{"standard_id":"IAS16","lesson_id":"LS.IAS16.000011","section_id":"charge-rule"},"references":["IAS 16 §49","IAS 2 §13"],"exercise":{"prompt":{"fr":"","en":"Case data: a car plant was shut for three months due to a supply shortage, with output well below normal capacity. True or false: the whole annual depreciation of the plant may be spread over the vehicles produced, even if this raises the unit cost.","es":""},"explanation":{"fr":"","en":"False. Reasoning: depreciation of a production plant does form part of inventory cost (IAS 16, para. 49), but fixed overheads are allocated on the basis of normal capacity. In a period of low production, the fixed overhead per unit is not increased and the unallocated amount is expensed in the period (IAS 2, para. 13). Main trap: spreading the whole charge over few units, which would inflate the unit cost above normal cost. Rule to remember: in under-activity, the amount absorbed at normal capacity is included in inventories; the rest is expensed.","es":""},"common_error":{"fr":"","en":"Believing that, in a period of low activity, all depreciation can increase the unit cost of inventories instead of the unallocated part being expensed.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS16.000136","source":"V2","standard_id":"IAS2","concept_ids":["IAS16.DEPRECIATION.COMPONENTS","IAS16.DEPRECIATION.CHARGE_RECOGNITION"],"dimension":"APPLICATION","format":"MINI_CASE","context":"FOOD","tested_point":"COMPONENTS_AND_INVENTORY_ABSORPTION","difficulty":"ADVANCED","estimated_time_s":420,"lesson_id":"LS.IAS16.000011","review":{"standard_id":"IAS16","lesson_id":"LS.IAS16.000011","section_id":"charge-entry"},"references":["IAS 16 §43","IAS 16 §48","IAS 16 §49","IAS 2 §12"],"exercise":{"prompt":{"fr":"","en":"Deal with the depreciation of Panifour's industrial bakery line for year N.","es":""},"explanation":{"fr":"","en":"Three-step approach. 1) Calculation by component (IAS 16, para. 43): 900,000 ÷ 15 = 60,000; 300,000 ÷ 10 = 30,000; 200,000 ÷ 5 = 40,000; total 130,000. 2) Recognition: the line is used only to make goods for sale, so depreciation is added to inventory cost (IAS 16, paras. 48 and 49); (IAS 2, para. 12), not to administrative expenses nor to the cost of the line itself. 3) Sales: 130,000 × 80% = 104,000 goes to cost of sales (debit cost of sales, credit inventories); 26,000 stays in closing inventories. Main trap: confusing the moment depreciation arises with the moment it reaches profit or loss. Rule to remember: the depreciation of a production asset is included in the cost of inventories and reaches profit or loss as the goods are sold (IAS 16, para. 49).","es":""},"common_error":{"fr":"","en":"Expensing depreciation as soon as it arises, instead of adding it to inventory cost and releasing it to profit or loss only on sale.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Panifour brings into service on 1 January N an industrial bakery line costing EUR 1,400,000, used only to make products for sale. Output at normal capacity; 80% of N's output is sold (case data). Straight-line method and zero residual values (case assumptions).","es":""},"exhibits":[{"title":{"fr":"","en":"Components (case data)","es":""},"body":{"fr":"","en":"Tunnel oven: 900,000, 15 years. Conveyors: 300,000, 10 years. Packaging module: 200,000, 5 years.","es":""}}],"parts":[{"prompt":{"fr":"","en":"Calculate the N charge by component.","es":""},"explanation":{"fr":"","en":"Approach: divide the cost of each component by its useful life. 900,000 ÷ 15 = 60,000; 300,000 ÷ 10 = 30,000; 200,000 ÷ 5 = 40,000; total 130,000 (IAS 16, para. 43). Rule to remember: each significant component has its own charge, calculated on its own life (IAS 16, para. 43).","es":""},"common_error":{"fr":"","en":"Applying an average life to the whole line: each significant component is depreciated over its own life.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"See the components","es":""},"value":"—","unit":"TEXT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Tunnel oven","es":""},"answer":60000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Conveyors","es":""},"answer":30000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Packaging module","es":""},"answer":40000,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Total","es":""},"answer":130000,"tolerance":0,"unit":"EUR"}],"id":"P1","dimension":"CALCULATION","formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Conveyors","es":""},"expression":"a / 10","variables":[{"symbol":"a","meaning":{"fr":"","en":"Conveyors: 300,000","es":""},"value":300000}],"result":30000,"unit":"EUR"},{"step":"S3","meaning":{"fr":"","en":"Packaging module","es":""},"expression":"a / 5","variables":[{"symbol":"a","meaning":{"fr":"","en":"Packaging module: 200,000","es":""},"value":200000}],"result":40000,"unit":"EUR"},{"step":"S4","meaning":{"fr":"","en":"Total","es":""},"expression":"a + b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Tunnel oven","es":""},"value":60000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Conveyors","es":""},"value":30000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Packaging module","es":""},"value":40000,"unit":"EUR"}],"result":130000,"unit":"EUR"}],"rationale":{"fr":"","en":"each significant component has its own charge, calculated on its own life (IAS 16, para. 43).","es":""},"references":["REF.IAS16.43"]}},{"prompt":{"fr":"","en":"Where is the charge recognised when it arises?","es":""},"explanation":{"fr":"","en":"The charge is included in the cost of another asset when the item's benefits are absorbed in producing it: here, inventories (IAS 16, paras. 48 and 49; IAS 2, para. 12).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In the cost of the manufactured inventories.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"In administrative expenses.","es":""},"correct":false,"feedback":{"fr":"","en":"The line is used only to make products intended for sale: its benefits are absorbed in the production of inventories, so the charge is included in their cost instead of being expensed as administrative costs (IAS 16, paras. 48 and 49). Rule to remember: the depreciation of a production asset is included in the cost of the inventories made (IAS 16, para. 49).","es":""}},{"id":"C","text":{"fr":"","en":"In the cost of the line itself.","es":""},"correct":false,"feedback":{"fr":"","en":"An asset does not include its own depreciation in its cost: depreciation spreads its cost and reduces its carrying amount. When the charge is included in the cost of another asset, here it is the inventories made with the line (IAS 16, paras. 48 and 49). Rule to remember: the charge goes to profit or loss or into the cost of another asset, not into the cost of the asset being depreciated (IAS 16, para. 48).","es":""}}],"id":"P2","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"Record the inventory release for N's sales (depreciation share only).","es":""},"explanation":{"fr":"","en":"Approach: apply the 80% sales rate to the charge included in inventories. 130,000 × 80% = 104,000 go to cost of sales; 26,000 remain in closing inventories. Trap: expensing the 130,000 as soon as it is recognised. Rule to remember: the charge included in inventories reaches profit or loss as the goods are sold (IAS 16, para. 49).","es":""},"common_error":{"fr":"","en":"Expensing the full 130,000 immediately: depreciation included in inventory reaches profit or loss as the goods are sold.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"COST_OF_SALES","text":{"fr":"","en":"Cost of sales (profit or loss)","es":""}},{"id":"INVENTORIES","text":{"fr":"","en":"Inventories (production costs)","es":""}},{"id":"DEP_EXP","text":{"fr":"","en":"Depreciation expense (profit or loss)","es":""}},{"id":"ACC_DEP","text":{"fr":"","en":"Accumulated depreciation","es":""}}],"lines":[{"id":"L1","account":"COST_OF_SALES","side":"DEBIT","amount":104000},{"id":"L2","account":"INVENTORIES","side":"CREDIT","amount":104000}],"id":"P3","dimension":"JOURNAL_ENTRY"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000001","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.SCOPE.GENERAL"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"AGRIFOOD","tested_point":"SCOPE_CLASSIFICATION","difficulty":"BEGINNER","estimated_time_s":75,"lesson_id":"LS.IAS2.000001","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000001","section_id":"how"},"references":["IAS 2 §2","IAS 2 §3"],"exercise":{"prompt":{"fr":"","en":"A food group holds the following assets. Classify each one according to the treatment set by IAS 2.","es":""},"explanation":{"fr":"","en":"Financial instruments (bonds) and biological assets related to agricultural activity (pigs) are outside the scope (IAS 2, para. 2). The broker-trader sugar at fair value less costs to sell and the cereals measured at net realisable value under well-established practices are excluded only from the measurement requirements (IAS 2, para. 3). Work in progress (hams) and supplies (packaging) fall within IAS 2 in full.","es":""},"common_error":{"fr":"","en":"Classifying the trader's sugar as 'outside the scope' when only the measurement rule is set aside.","es":""},"format":"CLASSIFICATION","categories":[{"id":"OUT_OF_SCOPE","text":{"fr":"","en":"Outside the scope of IAS 2","es":""}},{"id":"MEASUREMENT_EXCLUSION","text":{"fr":"","en":"Excluded from the measurement requirements only","es":""}},{"id":"IAS2_IN_FULL","text":{"fr":"","en":"IAS 2 in full","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Government bonds held as surplus cash","es":""},"category":"OUT_OF_SCOPE"},{"id":"I2","text":{"fr":"","en":"Herd of fattening pigs of the livestock subsidiary","es":""},"category":"OUT_OF_SCOPE"},{"id":"I3","text":{"fr":"","en":"Sugar of the trading subsidiary, bought for resale in the near future and measured at fair value less costs to sell","es":""},"category":"MEASUREMENT_EXCLUSION"},{"id":"I4","text":{"fr":"","en":"Hams being cured in the processing plant","es":""},"category":"IAS2_IN_FULL"},{"id":"I5","text":{"fr":"","en":"Packaging and labels awaiting use","es":""},"category":"IAS2_IN_FULL"},{"id":"I6","text":{"fr":"","en":"Cereals harvested by the farming subsidiary and measured at net realisable value under well-established industry practices","es":""},"category":"MEASUREMENT_EXCLUSION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000002","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.AGRICULTURAL_PRODUCE"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"AGRICULTURE","tested_point":"HARVESTED_PRODUCE_COST","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS2.000001","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000001","section_id":"harvested-produce"},"references":["IAS 2 §20"],"exercise":{"prompt":{"fr":"","en":"A farm harvests 500 t of maize on its own land. Growing costs incurred: 60,000. At the point of harvest: fair value 150 per tonne, costs to sell 6 per tonne. At the reporting date, two months later: fair value 158 per tonne. What is the cost of the maize inventory for IAS 2?","es":""},"explanation":{"fr":"","en":"Cost = fair value less costs to sell at the point of harvest: 500 × (150 − 6) = 72,000 (IAS 2, para. 20).","es":""},"common_error":{"fr":"","en":"Using growing costs as for a manufactured item.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"60,000","es":""},"correct":false,"feedback":{"fr":"","en":"Growing costs are not the IAS 2 cost of the harvested produce: cost is the value established at the point of harvest.","es":""}},{"id":"B","text":{"fr":"","en":"75,000","es":""},"correct":false,"feedback":{"fr":"","en":"500 × 150 is gross fair value: costs to sell must be deducted.","es":""}},{"id":"C","text":{"fr":"","en":"72,000","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"76,000","es":""},"correct":false,"feedback":{"fr":"","en":"500 × (158 − 6) uses the reporting-date value: cost is fixed at the point of harvest; afterwards the inventory is not remeasured to fair value.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000003","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.SCOPE.OBJECTIVE"],"dimension":"RECOGNITION","format":"TRUE_FALSE","context":"RETAIL","tested_point":"OBJECTIVE_COVERAGE","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IAS2.000001","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000001","section_id":"objective"},"references":["IAS 2","IAS 2 §9"],"exercise":{"prompt":{"fr":"","en":"Case data: at the reporting date, a toy distributor finds that a batch of games, carried in inventory at 80,000, can only be sold for 50,000 net of selling costs. The trainee suggests accounting for this loss under the general standard on impairment of assets. True or false: the write-down of this batch falls under IAS 2.","es":""},"explanation":{"fr":"","en":"True. IAS 2 gives guidance not only on determining cost but also on its subsequent recognition as an expense, including write-downs to net realisable value (IAS 2, para. 1). The batch is measured at the lower of cost and net realisable value (IAS 2, para. 9). The calculation of the write-down is covered in the chapter on net realisable value.","es":""},"common_error":{"fr":"","en":"Believing that any fall in the value of an asset falls under the general impairment standard, inventories included.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000004","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.AGRICULTURAL_PRODUCE","IAS2.MEASUREMENT.PRINCIPLE"],"dimension":"CALCULATION","format":"CALCULATION","context":"AGRICULTURE","tested_point":"HARVESTED_PRODUCE_NRV_TEST","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS2.000001","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000001","section_id":"numeric-example"},"references":["IAS 2 §20","IAS 2 §6","IAS 2 §9"],"exercise":{"prompt":{"fr":"","en":"A cereal farm harvests barley on its own land and stores it in a silo. Case assumption: it does not apply the producers' measurement exclusion and applies IAS 2 in full. Calculate the amounts requested.","es":""},"explanation":{"fr":"","en":"Cost = 300 × (180 − 8) = 51,600: fair value less costs to sell at the point of harvest (IAS 2, para. 20); the 38,000 of growing costs are not used. Net realisable value = 300 × (165 − 8) = 47,100 (IAS 2, para. 6). Inventory is measured at the lower, 47,100; write-down 51,600 − 47,100 = 4,500 (IAS 2, para. 9).","es":""},"common_error":{"fr":"","en":"Comparing net realisable value with the growing costs (38,000) and concluding that there is no write-down.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Quantity harvested","es":""},"value":"300 t","unit":"TEXT"},{"label":{"fr":"","en":"Growing costs incurred","es":""},"value":"38000","unit":"EUR"},{"label":{"fr":"","en":"Fair value at the point of harvest, per tonne","es":""},"value":"180","unit":"EUR"},{"label":{"fr":"","en":"Costs to sell, per tonne","es":""},"value":"8","unit":"EUR"},{"label":{"fr":"","en":"Estimated selling price at the reporting date, per tonne","es":""},"value":"165","unit":"EUR"},{"label":{"fr":"","en":"Estimated costs to sell at the reporting date, per tonne","es":""},"value":"8","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Cost of the barley inventory for IAS 2","es":""},"answer":51600,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Net realisable value at the reporting date","es":""},"answer":47100,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Write-down to recognise","es":""},"answer":4500,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Amount of inventory in the balance sheet","es":""},"answer":47100,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S3","meaning":{"fr":"","en":"Write-down to recognise","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the barley inventory for IAS 2","es":""},"value":51600,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Net realisable value at the reporting date","es":""},"value":47100,"unit":"EUR"}],"result":4500,"unit":"EUR"}],"references":["REF.IAS2.20","REF.IAS2.6","REF.IAS2.9"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000005","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.SCOPE.GENERAL","IAS2.COST.AGRICULTURAL_PRODUCE"],"dimension":"RULE_KNOWLEDGE","format":"MATCHING","context":"DAIRY","tested_point":"APPLICABLE_STANDARD","difficulty":"BEGINNER","estimated_time_s":75,"lesson_id":"LS.IAS2.000001","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000001","section_id":"scope-exclusions"},"references":["IAS 2 §2","IAS 2 §20"],"exercise":{"prompt":{"fr":"","en":"An integrated dairy cooperative holds the assets below. Case assumption: milking is the point of harvest of the milk. Match each one with the standard that sets its measurement.","es":""},"explanation":{"fr":"","en":"Financial instruments fall under IAS 32 and IFRS 9; biological assets related to agricultural activity and agricultural produce at the point of harvest (here, milking, under the case assumption) fall under IAS 41 (IAS 2, para. 2). Once harvested, milk becomes inventory whose cost is its fair value less costs to sell at harvest (IAS 2, para. 20); the cheeses made from it and the packaging are IAS 2 inventories. IFRS 15 does not set the measurement of these assets.","es":""},"common_error":{"fr":"","en":"Attaching the cheeses to IAS 41 because they come from animals.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"Units in a money market fund held as cash management","es":""}},{"id":"L2","text":{"fr":"","en":"Herd of dairy cows","es":""}},{"id":"L3","text":{"fr":"","en":"Milk at the point of milking","es":""}},{"id":"L4","text":{"fr":"","en":"Cheeses being matured","es":""}},{"id":"L5","text":{"fr":"","en":"Pots and lids awaiting packing","es":""}}],"right":[{"id":"R1","text":{"fr":"","en":"IAS 32 and IFRS 9","es":""}},{"id":"R2","text":{"fr":"","en":"IAS 41","es":""}},{"id":"R3","text":{"fr":"","en":"IAS 2","es":""}},{"id":"R4","text":{"fr":"","en":"IFRS 15","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"},{"left":"L3","right":"R2"},{"left":"L4","right":"R3"},{"left":"L5","right":"R3"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000006","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.AGRICULTURAL_PRODUCE","IAS2.SCOPE.GENERAL"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"AGRIFOOD","tested_point":"HARVEST_BOUNDARY_ERRORS","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS2.000001","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000001","section_id":"pitfalls"},"references":["IAS 2 §2","IAS 2 §20","IAS 2 §9"],"exercise":{"prompt":{"fr":"","en":"The accountant of a wheat cooperative (which applies IAS 2 in full, with no measurement exclusion) drafts the closing memo. Spot the incorrect statements.","es":""},"explanation":{"fr":"","en":"Before harvest: IAS 41 (IAS 2, para. 2). At harvest: the IAS 2 cost is fair value less costs to sell (IAS 2, para. 20). Afterwards: lower of cost and net realisable value (IAS 2, para. 9).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"The winter wheat crops still standing at 31 December are measured at cost under IAS 2, like other inventories.","es":""},"erroneous":true,"correction":{"fr":"","en":"A standing crop is a biological asset related to agricultural activity: it is outside IAS 2 and falls under IAS 41 (IAS 2, para. 2).","es":""}},{"id":"S2","text":{"fr":"","en":"The wheat harvested in July was recognised in inventory at its fair value less costs to sell at the point of harvest; that amount is its cost.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"As wheat prices have risen since July, the inventory in the silo is remeasured to fair value at 31 December, with a gain in profit or loss.","es":""},"erroneous":true,"correction":{"fr":"","en":"After harvest, the wheat is inventory measured at the lower of cost and net realisable value (IAS 2, para. 9): no remeasurement above the cost set at harvest (IAS 2, para. 20).","es":""}},{"id":"S4","text":{"fr":"","en":"If the net realisable value of the wheat in the silo falls below its cost, the inventory is written down by the difference.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000007","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.SCOPE.GENERAL"],"dimension":"APPLICATION","format":"MINI_CASE","context":"MINING","tested_point":"PRODUCER_MEASUREMENT_EXCLUSION","difficulty":"ADVANCED","estimated_time_s":240,"lesson_id":"LS.IAS2.000001","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000001","section_id":"measurement-only-exclusions"},"references":["IAS 2 §2","IAS 2 §3","IAS 2","IAS 2 §36"],"exercise":{"prompt":{"fr":"","en":"Analyse the treatment of the mining company's copper concentrate.","es":""},"explanation":{"fr":"","en":"Producers' measurement exclusion for minerals (IAS 2, paras. 3(a) and 4): measurement at net realisable value, change of 150,000 in profit or loss, IAS 2 disclosures maintained (IAS 2, para. 36).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"'Minéraux Kestrel' (fictitious entity) extracts and concentrates copper ore. In line with a well-established practice in its industry, it measures its concentrate inventories at net realisable value from extraction: all production is sold under forward contracts to a smelter, and copper is quoted on an active market. Quantities are stable over the year; net realisable value of the concentrate: 2,400,000 at the opening date, 2,550,000 at the reporting date.","es":""},"parts":[{"prompt":{"fr":"","en":"What is the position of these inventories under IAS 2?","es":""},"explanation":{"fr":"","en":"Inventories of minerals and mineral products measured at net realisable value under well-established industry practices are excluded only from the measurement requirements (IAS 2, para. 3(a)); sale assured by forward contract and an active market match the situations described by the standard (IAS 2, para. 4).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Outside the scope of IAS 2, like biological assets","es":""},"correct":false,"feedback":{"fr":"","en":"Minerals are not among the full exclusions of para. 2.","es":""}},{"id":"B","text":{"fr":"","en":"Within IAS 2, but excluded from its measurement requirements only","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Within IAS 2 in full: lower of cost and net realisable value required","es":""},"correct":false,"feedback":{"fr":"","en":"A mineral producer measuring at net realisable value under a well-established industry practice is outside that measurement rule (para. 3(a)).","es":""}}],"id":"P1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"Calculate the effect of the change in value of the concentrate.","es":""},"explanation":{"fr":"","en":"2,550,000 − 2,400,000 = 150,000; these changes are recognised in profit or loss in the period of the change, not in equity (IAS 2, para. 3).","es":""},"common_error":{"fr":"","en":"Recognising the change in equity: for these inventories measured at NRV, it goes to profit or loss for the period.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Net realisable value at the opening date","es":""},"value":"2400000","unit":"EUR"},{"label":{"fr":"","en":"Net realisable value at the reporting date","es":""},"value":"2550000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Gain recognised in profit or loss for the period","es":""},"answer":150000,"tolerance":0,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Gain recognised in profit or loss for the period","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Net realisable value at the reporting date","es":""},"value":2550000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Net realisable value at the opening date","es":""},"value":2400000,"unit":"EUR"}],"result":150000,"unit":"EUR"}],"references":["REF.IAS2.3"]}},{"prompt":{"fr":"","en":"Which IAS 2 requirements still apply to these inventories?","es":""},"explanation":{"fr":"","en":"The exclusion covers measurement only: the IAS 2 disclosures still apply, including accounting policies and carrying amount by category (IAS 2, paras. 3 and 36).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Disclose the accounting policies adopted in measuring inventories","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Disclose the total carrying amount of inventories and its breakdown by category","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Cap the concentrate at its production cost","es":""},"correct":false,"feedback":{"fr":"","en":"That is the measurement rule from which these inventories are excluded (IAS 2, para. 3(a)).","es":""}},{"id":"D","text":{"fr":"","en":"Recognise changes in value in other comprehensive income","es":""},"correct":false,"feedback":{"fr":"","en":"Changes go to profit or loss for the period (IAS 2, para. 3).","es":""}}],"id":"P3","dimension":"DOCUMENTATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000008","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.SCOPE.GENERAL"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MULTIPLE_CHOICE","context":"COMMODITIES","tested_point":"BROKER_TRADER_INDICATORS","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IAS2.000001","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000001","section_id":"judgment"},"references":["IAS 2 §3","IAS 2 §5"],"exercise":{"prompt":{"fr":"","en":"A coffee trading company wishes to measure part of its inventories at fair value less costs to sell under the exclusion for broker-traders. Which elements support that classification?","es":""},"explanation":{"fr":"","en":"A broker-trader buys or sells commodities for others or on its own account; its inventories are acquired principally for sale in the near future and to generate a profit from price fluctuations or the broker-traders' margin (IAS 2, para. 5). Measured at fair value less costs to sell, they are excluded only from the measurement requirements (IAS 2, para. 3(b)).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The coffee is bought principally to be sold in the near future","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The profit sought comes from price fluctuations or the broker-traders' margin","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The company buys and sells coffee on its own account and on behalf of customers","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The coffee is intended to be roasted in the company's plant before being sold under its brand","es":""},"correct":false,"feedback":{"fr":"","en":"Inventory intended for processing is not held for resale in the near future with a profit on prices: it is operating inventory, measured under IAS 2 in full.","es":""}},{"id":"E","text":{"fr":"","en":"Management wishes to report a higher profit when prices rise","es":""},"correct":false,"feedback":{"fr":"","en":"The exclusion is not an opportunistic choice: it depends on the activity and the purpose for which the inventory is held.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000009","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.DEFINITIONS.KEY_TERMS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"REAL_ESTATE","tested_point":"INVENTORY_DEFINITION","difficulty":"BEGINNER","estimated_time_s":75,"lesson_id":"LS.IAS2.000002","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000002","section_id":"inventories-definition"},"references":["IAS 2 §6","IAS 2"],"exercise":{"prompt":{"fr":"","en":"A property developer lists its assets. Indicate which ones are inventories under IAS 2.","es":""},"explanation":{"fr":"","en":"Land and property held for resale in the ordinary course of business, and materials awaiting use, are inventories (IAS 2, paras. 6 and 8). The head office and the building kept to be let are not held for sale in the ordinary course of business: they do not meet the definition of inventories (IAS 2, para. 6).","es":""},"common_error":{"fr":"","en":"Classifying all of a developer's buildings as inventory, whatever their use.","es":""},"format":"CLASSIFICATION","categories":[{"id":"INVENTORY","text":{"fr":"","en":"Inventory","es":""}},{"id":"NOT_INVENTORY","text":{"fr":"","en":"Not inventory","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Land bought to be serviced and then resold in plots","es":""},"category":"INVENTORY"},{"id":"I2","text":{"fr":"","en":"Completed apartments not yet sold, offered for sale","es":""},"category":"INVENTORY"},{"id":"I3","text":{"fr":"","en":"Office building where the developer has its head office","es":""},"category":"NOT_INVENTORY"},{"id":"I4","text":{"fr":"","en":"Building kept on a long-term basis to be let, withdrawn from sale by board decision","es":""},"category":"NOT_INVENTORY"},{"id":"I5","text":{"fr":"","en":"Materials (cement, tiles) awaiting use on construction sites for sale","es":""},"category":"INVENTORY"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000010","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.DEFINITIONS.KEY_TERMS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"MANUFACTURING","tested_point":"INVENTORY_CATEGORIES","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS2.000002","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000002","section_id":"inventories-definition"},"references":["IAS 2 §6","IAS 2"],"exercise":{"prompt":{"fr":"","en":"A bicycle manufacturer prepares the breakdown of its assets at the reporting date. Classify each item.","es":""},"explanation":{"fr":"","en":"Materials and supplies to be consumed in production, work in progress and finished goods are inventories (IAS 2, paras. 6 and 8). The robot is used over a long period: it is neither sold nor consumed in production, so it is not inventory (IAS 2, para. 6).","es":""},"common_error":{"fr":"","en":"Classifying the welding robot as inventory, or consumables outside inventory: the robot is used over the long term, consumables are production supplies.","es":""},"format":"CLASSIFICATION","categories":[{"id":"MATERIALS","text":{"fr":"","en":"Raw materials and supplies","es":""}},{"id":"WIP","text":{"fr":"","en":"Work in progress","es":""}},{"id":"FINISHED","text":{"fr":"","en":"Finished goods","es":""}},{"id":"NOT_INVENTORY","text":{"fr":"","en":"Not inventory","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Aluminium tubes awaiting cutting","es":""},"category":"MATERIALS"},{"id":"I2","text":{"fr":"","en":"Lubricants and consumables used on the assembly line","es":""},"category":"MATERIALS"},{"id":"I3","text":{"fr":"","en":"Welded frames, not yet painted or assembled","es":""},"category":"WIP"},{"id":"I4","text":{"fr":"","en":"Completed bicycles awaiting shipment","es":""},"category":"FINISHED"},{"id":"I5","text":{"fr":"","en":"Welding robot installed on the line for three years","es":""},"category":"NOT_INVENTORY"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000011","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.MEASUREMENT.PRINCIPLE"],"dimension":"CALCULATION","format":"CALCULATION","context":"RETAIL","tested_point":"LOWER_OF_COST_AND_NRV_ITEM_BY_ITEM","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS2.000002","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000002","section_id":"numeric-example"},"references":["IAS 2 §9","IAS 2 §29"],"exercise":{"prompt":{"fr":"","en":"A household appliance retailer measures three product lines at the reporting date. Calculate the amounts requested, item by item.","es":""},"explanation":{"fr":"","en":"Item by item (IAS 2, paras. 9 and 29): X at cost 9,000; Y at net realisable value 5,800; Z at net realisable value 12,600. Total 27,400; write-down (6,500 − 5,800) + (14,000 − 12,600) = 700 + 1,400 = 2,100. A global comparison (cost 29,500, net realisable value 28,600) would wrongly give 900.","es":""},"common_error":{"fr":"","en":"Comparing totals and letting the unrealised gain on X offset part of the losses on Y and Z.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Line X (washing machines): cost","es":""},"value":"9000","unit":"EUR"},{"label":{"fr":"","en":"Line X: net realisable value","es":""},"value":"10200","unit":"EUR"},{"label":{"fr":"","en":"Line Y (ovens): cost","es":""},"value":"6500","unit":"EUR"},{"label":{"fr":"","en":"Line Y: net realisable value","es":""},"value":"5800","unit":"EUR"},{"label":{"fr":"","en":"Line Z (refrigerators): cost","es":""},"value":"14000","unit":"EUR"},{"label":{"fr":"","en":"Line Z: net realisable value","es":""},"value":"12600","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Amount retained for line Y","es":""},"answer":5800,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Total amount of inventories in the balance sheet","es":""},"answer":27400,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Total write-down","es":""},"answer":2100,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S3","meaning":{"fr":"","en":"Total write-down","es":""},"expression":"(a - b) + (c - d)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Line Y (ovens): cost","es":""},"value":6500,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Line Y: net realisable value","es":""},"value":5800,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Line Z (refrigerators): cost","es":""},"value":14000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Line Z: net realisable value","es":""},"value":12600,"unit":"EUR"}],"result":2100,"unit":"EUR"}],"rationale":{"fr":"","en":"Item by item (IAS 2, paras. 9 and 29): X at cost 9,000","es":""},"references":["REF.IAS2.9","REF.IAS2.29"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000012","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.DEFINITIONS.KEY_TERMS","IAS2.MEASUREMENT.PRINCIPLE"],"dimension":"CALCULATION","format":"CALCULATION","context":"FOOD","tested_point":"NRV_VERSUS_FAIR_VALUE","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS2.000002","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000002","section_id":"nrv-vs-fair-value"},"references":["IAS 2 §6","IAS 2","IAS 2 §9"],"exercise":{"prompt":{"fr":"","en":"A coffee roaster sells its roasted coffee in its own shops. At the reporting date it holds 5,000 kg of roasted coffee. Calculate the amounts requested.","es":""},"explanation":{"fr":"","en":"Net realisable value = 24 − 3 = 21, specific to the entity selling through its shops (IAS 2, paras. 6 and 7). Fair value less costs to sell = 19 − 1 = 18. The IAS 2 test compares cost (20) with net realisable value (21): inventory stays at cost, 5,000 × 20 = 100,000, with no write-down (IAS 2, para. 9). Using 18 would wrongly give 90,000.","es":""},"common_error":{"fr":"","en":"Using the wholesale market price as net realisable value and writing down by 10,000.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Cost per kg","es":""},"value":"20","unit":"EUR"},{"label":{"fr":"","en":"Expected selling price in its shops, per kg","es":""},"value":"24","unit":"EUR"},{"label":{"fr":"","en":"Estimated costs to sell in its shops, per kg","es":""},"value":"3","unit":"EUR"},{"label":{"fr":"","en":"Exit price in the wholesale market, per kg","es":""},"value":"19","unit":"EUR"},{"label":{"fr":"","en":"Costs to sell in that market, per kg","es":""},"value":"1","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Net realisable value per kg","es":""},"answer":21,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Fair value less costs to sell per kg","es":""},"answer":18,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Amount of inventory in the balance sheet","es":""},"answer":100000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Net realisable value per kg","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Expected selling price in its shops, per kg","es":""},"value":24,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Estimated costs to sell in its shops, per kg","es":""},"value":3,"unit":"EUR"}],"result":21,"unit":"EUR","rationale":{"fr":"","en":"Net realisable value = 24 − 3 = 21, specific to the entity selling through its shops (IAS 2, paras. 6 and 7).","es":""}},{"step":"S2","meaning":{"fr":"","en":"Fair value less costs to sell per kg","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Exit price in the wholesale market, per kg","es":""},"value":19,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Costs to sell in that market, per kg","es":""},"value":1,"unit":"EUR"}],"result":18,"unit":"EUR"}],"references":["REF.IAS2.6","REF.IAS2.7","REF.IAS2.9"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000013","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.DEFINITIONS.KEY_TERMS","IAS2.MEASUREMENT.PRINCIPLE"],"dimension":"RULE_KNOWLEDGE","format":"MATCHING","context":"GENERIC","tested_point":"KEY_TERMS_MEANING","difficulty":"BEGINNER","estimated_time_s":75,"lesson_id":"LS.IAS2.000002","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000002","section_id":"nrv-vs-fair-value"},"references":["IAS 2 §6","IAS 2","IAS 2 §9"],"exercise":{"prompt":{"fr":"","en":"Match each notion with its description.","es":""},"explanation":{"fr":"","en":"Definitions of inventories, net realisable value and fair value (IAS 2, para. 6); the former value is entity-specific, the latter is not (IAS 2, para. 7); measurement at the lower of cost and net realisable value (IAS 2, para. 9). No IAS 2 rule uses the higher of cost and fair value.","es":""},"common_error":{"fr":"","en":"Confusing NRV and fair value: NRV is entity-specific, fair value is a market price; IAS 2 uses the lower of cost and NRV.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"Inventories","es":""}},{"id":"L2","text":{"fr":"","en":"Net realisable value","es":""}},{"id":"L3","text":{"fr":"","en":"Fair value","es":""}},{"id":"L4","text":{"fr":"","en":"IAS 2 measurement rule","es":""}}],"right":[{"id":"R1","text":{"fr":"","en":"Assets to be sold in the ordinary course of business, in production for such sale, or to be consumed in production or services","es":""}},{"id":"R2","text":{"fr":"","en":"Net amount the entity itself expects to realise from the sale: estimated price less costs of completion and costs to sell","es":""}},{"id":"R3","text":{"fr":"","en":"Price that would be received in an orderly transaction between market participants, not entity-specific","es":""}},{"id":"R4","text":{"fr":"","en":"The lower of cost and net realisable value","es":""}},{"id":"R5","text":{"fr":"","en":"The higher of cost and fair value","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"},{"left":"L3","right":"R3"},{"left":"L4","right":"R4"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000014","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.DEFINITIONS.KEY_TERMS"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"SOFTWARE","tested_point":"SERVICE_CONTRACT_COSTS","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS2.000002","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000002","section_id":"inventories-definition"},"references":["IAS 2 §6","IAS 2"],"exercise":{"prompt":{"fr":"","en":"Case data: a digital services company is performing a contract to roll out a business application for a customer. At the reporting date, it has incurred 35,000 of developer salaries to configure the application; this work creates no storable goods and no asset within the scope of another standard. It also holds 12,000 of tablets purchased, still in its warehouse, which will be handed over to the customer during the roll-out. Which treatment do you retain?","es":""},"explanation":{"fr":"","en":"Inventories include goods held for sale in the ordinary course of business and supplies to be consumed in rendering services (IAS 2, para. 6): the tablets are among them. By contrast, costs of fulfilling a contract that give rise neither to inventories nor to assets within the scope of another standard fall under IFRS 15 (IAS 2, para. 8). The detailed treatment of these costs is covered with IFRS 15.","es":""},"common_error":{"fr":"","en":"Treating all the costs of a contract in the same way, without distinguishing purchased goods, which are inventories, from labour costs that create no inventory.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Both amounts are inventories under IAS 2 (work in progress and goods)","es":""},"correct":false,"feedback":{"fr":"","en":"The configuration salaries create no inventory: they are outside IAS 2 (IAS 2, para. 8).","es":""}},{"id":"B","text":{"fr":"","en":"The tablets are inventories (IAS 2); the salaries, which create no inventory, fall under IFRS 15","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Both amounts fall under IFRS 15, since they serve the same contract","es":""},"correct":false,"feedback":{"fr":"","en":"Tablets purchased and held to be handed over to the customer are goods in inventory: the link with the contract does not change their nature (IAS 2, para. 6).","es":""}},{"id":"D","text":{"fr":"","en":"The salaries are work in progress under IAS 2; the tablets are property, plant and equipment","es":""},"correct":false,"feedback":{"fr":"","en":"The tablets are not used by the entity in its operations: they will be handed over to the customer. The salaries, for their part, create no inventory.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000015","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.MEASUREMENT.PRINCIPLE","IAS2.DEFINITIONS.KEY_TERMS"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"RETAIL","tested_point":"MEASUREMENT_PRINCIPLE_ERRORS","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS2.000002","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000002","section_id":"pitfalls"},"references":["IAS 2 §6","IAS 2 §9","IAS 2 §29"],"exercise":{"prompt":{"fr":"","en":"Here is the closing memo of a sports store chain. Spot the incorrect statements.","es":""},"explanation":{"fr":"","en":"The measurement principle (IAS 2, para. 9) prohibits going above cost and requires losses to be recognised item by item (IAS 2, para. 29). Net realisable value deducts costs of completion and costs to sell from the estimated price (IAS 2, para. 6).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"Inventories are measured at the lower of cost and net realisable value.","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"The electric bikes, in high demand, were increased from their cost of 180,000 to their net realisable value of 230,000, to reflect their real value.","es":""},"erroneous":true,"correction":{"fr":"","en":"Cost is a ceiling: the bikes stay at 180,000; the margin will be recognised on sale (IAS 2, para. 9).","es":""}},{"id":"S3","text":{"fr":"","en":"Total net realisable value of inventories (612,000) exceeds their total cost (598,000): no write-down is needed, even though last season's skis are worth less than their cost.","es":""},"erroneous":true,"correction":{"fr":"","en":"The test is item by item, with no offsetting: last season's skis must be written down (IAS 2, paras. 9 and 29).","es":""}},{"id":"S4","text":{"fr":"","en":"For finished goods with no costs of completion, net realisable value is the estimated selling price less the estimated costs to sell.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000016","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"NRV_ENTITY_SPECIFIC","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS2.000002","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000002","section_id":"nrv-vs-fair-value"},"references":["IAS 2"],"exercise":{"prompt":{"fr":"","en":"Two entities holding exactly the same product, at the same date, may assign it different net realisable values.","es":""},"explanation":{"fr":"","en":"True. Net realisable value is the amount the entity itself expects to realise from the sale in the ordinary course of business: it is entity-specific (its customers, prices and selling costs), unlike fair value (IAS 2, para. 7).","es":""},"common_error":{"fr":"","en":"Thinking that net realisable value is a single market price, the same for everyone.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000017","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.DEFINITIONS.KEY_TERMS","IAS2.MEASUREMENT.PRINCIPLE"],"dimension":"APPLICATION","format":"MINI_CASE","context":"ENERGY","tested_point":"QUALIFY_AND_MEASURE","difficulty":"ADVANCED","estimated_time_s":240,"lesson_id":"LS.IAS2.000002","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000002","section_id":"how"},"references":["IAS 2 §6","IAS 2 §9","IAS 2 §29"],"exercise":{"prompt":{"fr":"","en":"Analyse the situation of the solar panel distributor.","es":""},"explanation":{"fr":"","en":"Qualify first (IAS 2, para. 6), then compare cost and net realisable value model by model (IAS 2, para. 9): inventories 101,000, write-down 6,000.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"'Héliodis' (fictitious entity) distributes solar panels to installers. At the reporting date it holds 400 panels of model H1 (unit cost 180) and 250 panels of model H2 (unit cost 140). Model H1 faces competition from a new generation: expected selling price 175, selling costs 10 per panel. Model H2 sells well: expected price 260, selling costs 12. Héliodis has also installed 60 H2 panels on the roof of its warehouse, which have been producing electricity for its offices for two years.","es":""},"parts":[{"prompt":{"fr":"","en":"Are the 60 panels installed on the warehouse roof inventory?","es":""},"explanation":{"fr":"","en":"Panels that have been producing electricity for the offices for two years are not held for sale, not in production and not consumed in production: they do not meet the definition of inventories (IAS 2, para. 6).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Yes, because Héliodis sells the same model","es":""},"correct":false,"feedback":{"fr":"","en":"It is the entity's use that matters, not the model: these panels are not held for sale.","es":""}},{"id":"B","text":{"fr":"","en":"No, because they are used by the entity over a long period","es":""},"correct":true}],"id":"P1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"Measure the inventories of panels held for sale.","es":""},"explanation":{"fr":"","en":"H1: net realisable value 175 − 10 = 165 < cost 180 → 400 × 165 = 66,000; write-down 400 × 15 = 6,000. H2: net realisable value 248 > cost 140 → 250 × 140 = 35,000, no remeasurement above cost (IAS 2, paras. 6 and 9).","es":""},"common_error":{"fr":"","en":"Carrying H2 at its NRV above cost: inventory stays at cost; only H1, whose NRV is below cost, is written down.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"H1: quantity, unit cost","es":""},"value":"400 × 180","unit":"TEXT"},{"label":{"fr":"","en":"H1: expected price, selling costs","es":""},"value":"175 ; 10","unit":"TEXT"},{"label":{"fr":"","en":"H2: quantity, unit cost","es":""},"value":"250 × 140","unit":"TEXT"},{"label":{"fr":"","en":"H2: expected price, selling costs","es":""},"value":"260 ; 12","unit":"TEXT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Amount retained for H1","es":""},"answer":66000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Amount retained for H2","es":""},"answer":35000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Write-down to recognise","es":""},"answer":6000,"tolerance":0,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Amount retained for H1","es":""},"expression":"a * (b - c)","variables":[{"symbol":"a","meaning":{"fr":"","en":"400 panels of model H","es":""},"value":400},{"symbol":"b","meaning":{"fr":"","en":"faces competition from a new generation: expected selling price 175","es":""},"value":175},{"symbol":"c","meaning":{"fr":"","en":"selling costs 10","es":""},"value":10}],"result":66000,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Amount retained for H2","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"250 panels of model H","es":""},"value":250},{"symbol":"b","meaning":{"fr":"","en":"unit cost 140","es":""},"value":140}],"result":35000,"unit":"EUR","rationale":{"fr":"","en":"H2: net realisable value 248 > cost 140 → 250 × 140 = 35,000, no remeasurement above cost (IAS 2, paras. 6 and 9).","es":""}}],"references":["REF.IAS2.6","REF.IAS2.9"]}},{"prompt":{"fr":"","en":"Héliodis may offset the write-down on H1 against the unrealised gain on H2 (250 × 108 = 27,000), since both models are solar panels.","es":""},"explanation":{"fr":"","en":"False. Inventory is in principle measured item by item (IAS 2, paras. 9 and 29). Grouping is allowed only in limited cases, for similar or related items that cannot practicably be evaluated separately (IAS 2, para. 29): here the two models are easily evaluated separately, and merely being solar panels is not enough. The unrealised gain on H2 therefore does not offset the loss on H1.","es":""},"common_error":{"fr":"","en":"Offsetting one item's loss with another's unrealised gain: the test is item by item, except similar items that cannot be measured separately.","es":""},"format":"TRUE_FALSE","answer":false,"id":"P3","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000018","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.PURCHASE"],"dimension":"CALCULATION","format":"CALCULATION","context":"RETAIL","tested_point":"PURCHASE_COST_WITH_DISCOUNT","difficulty":"BEGINNER","estimated_time_s":120,"lesson_id":"LS.IAS2.000003","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000003","section_id":"purchase-cost-rule"},"references":["IAS 2 §11"],"exercise":{"prompt":{"fr":"","en":"A home decoration retailer buys 600 lamps. The tax data are case data. Calculate the amounts requested.","es":""},"explanation":{"fr":"","en":"Gross price 600 × 25 = 15,000; 8% discount = 1,200 → net price 13,800 (discount deducted). Cost = 13,800 + 420 transport = 14,220; the recoverable VAT of 2,760 is excluded (IAS 2, para. 11). Unit cost = 14,220 / 600 = 23.70.","es":""},"common_error":{"fr":"","en":"Starting from the list price (15,000) and forgetting the discount, or adding the recoverable VAT to cost.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Unit list price","es":""},"value":"25","unit":"EUR"},{"label":{"fr":"","en":"Trade discount on the list price","es":""},"value":"8","unit":"PERCENT"},{"label":{"fr":"","en":"VAT invoiced, recoverable (20% of net price)","es":""},"value":"2760","unit":"EUR"},{"label":{"fr":"","en":"Transport to the warehouse","es":""},"value":"420","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Purchase price net of discount","es":""},"answer":13800,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Cost of purchase of the batch","es":""},"answer":14220,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Unit cost","es":""},"answer":23.7,"tolerance":0.001,"unit":"EUR"}],"formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Cost of purchase of the batch","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Purchase price net of discount","es":""},"value":13800,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Transport to the warehouse","es":""},"value":420,"unit":"EUR"}],"result":14220,"unit":"EUR"}],"references":["REF.IAS2.11"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000019","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.PURCHASE"],"dimension":"CALCULATION","format":"CALCULATION","context":"AUTOMOTIVE","tested_point":"IMPORT_COST_WITH_DUTIES","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IAS2.000003","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000003","section_id":"numeric-example"},"references":["IAS 2 §10","IAS 2 §11","IAS 2 §16"],"exercise":{"prompt":{"fr":"","en":"A car parts distributor imports 2,000 brake kits. The customs duty rate and the recoverability of VAT are case data. Calculate the amounts requested.","es":""},"explanation":{"fr":"","en":"Gross price 2,000 × 45 = 90,000; 4% rebate = 3,600 → net price 86,400. Duties = 86,400 × 3.5% = 3,024. Cost = 86,400 + 3,024 + 2,100 + 380 + 640 = 92,544 (IAS 2, paras. 10 and 11). Recoverable VAT is excluded (IAS 2, para. 11); storage after receipt is an expense (IAS 2, para. 16). Unit cost = 92,544 / 2,000 = 46.272.","es":""},"common_error":{"fr":"","en":"Including the 900 storage cost on the grounds that it relates to the inventory.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Unit price invoiced","es":""},"value":"45","unit":"EUR"},{"label":{"fr":"","en":"Rebate obtained on the invoice","es":""},"value":"4","unit":"PERCENT"},{"label":{"fr":"","en":"Customs duties, not recoverable (% of net price)","es":""},"value":"3.5","unit":"PERCENT"},{"label":{"fr":"","en":"Import VAT, recoverable","es":""},"value":"17884.80","unit":"EUR"},{"label":{"fr":"","en":"Sea freight","es":""},"value":"2100","unit":"EUR"},{"label":{"fr":"","en":"Transit insurance","es":""},"value":"380","unit":"EUR"},{"label":{"fr":"","en":"Port handling and unloading","es":""},"value":"640","unit":"EUR"},{"label":{"fr":"","en":"Storage in the warehouse after receipt, awaiting sale","es":""},"value":"900","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Customs duties","es":""},"answer":3024,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Cost of purchase of the batch","es":""},"answer":92544,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Unit cost per kit","es":""},"answer":46.272,"tolerance":0.001,"unit":"EUR"}],"formula":{"lines":[{"step":"S3","meaning":{"fr":"","en":"Unit cost per kit","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of purchase of the batch","es":""},"value":92544,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"A car parts distributor imports 2,000 brake kits","es":""},"value":2000}],"result":46.272,"unit":"EUR"}],"references":["REF.IAS2.10","REF.IAS2.11","REF.IAS2.16"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000020","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.PURCHASE"],"dimension":"CALCULATION","format":"CALCULATION","context":"PHARMA","tested_point":"UNIT_PURCHASE_COST","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS2.000003","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000003","section_id":"how"},"references":["IAS 2 §11"],"exercise":{"prompt":{"fr":"","en":"A pharmaceutical wholesaler receives 10,000 boxes of a medicine. According to the case data, the specific levy is not recoverable. Calculate the amounts requested.","es":""},"explanation":{"fr":"","en":"Net price = 10,000 × (12.40 − 0.40) = 120,000 (rebate deducted). Non-recoverable levy = 120,000 × 1.5% = 1,800, included. Cost = 120,000 + 1,800 + 2,600 + 600 = 125,000 (IAS 2, para. 11). Unit cost = 125,000 / 10,000 = 12.50.","es":""},"common_error":{"fr":"","en":"Excluding the specific levy by analogy with VAT, although it is not recoverable.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Unit price invoiced","es":""},"value":"12.40","unit":"EUR"},{"label":{"fr":"","en":"Rebate granted on the invoice, per box","es":""},"value":"0.40","unit":"EUR"},{"label":{"fr":"","en":"Non-recoverable specific levy (% of net price)","es":""},"value":"1.5","unit":"PERCENT"},{"label":{"fr":"","en":"Temperature-controlled transport","es":""},"value":"2600","unit":"EUR"},{"label":{"fr":"","en":"Handling on receipt","es":""},"value":"600","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Purchase price net of rebate","es":""},"answer":120000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Cost of purchase of the batch","es":""},"answer":125000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Unit cost per box","es":""},"answer":12.5,"tolerance":0.001,"unit":"EUR"}],"formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Cost of purchase of the batch","es":""},"expression":"a + (a * b) + c + d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Purchase price net of rebate","es":""},"value":120000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Non-recoverable specific levy (% of net price)","es":""},"value":1.5,"unit":"PERCENT"},{"symbol":"c","meaning":{"fr":"","en":"Temperature-controlled transport","es":""},"value":2600,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Handling on receipt","es":""},"value":600,"unit":"EUR"}],"result":125000,"unit":"EUR"}],"rationale":{"fr":"","en":"Cost = 120,000 + 1,800 + 2,600 + 600 = 125,000 (IAS 2, para. 11).","es":""},"references":["REF.IAS2.11"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000021","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.PURCHASE"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"RETAIL","tested_point":"PURCHASE_ENTRY","difficulty":"BEGINNER","estimated_time_s":120,"lesson_id":"LS.IAS2.000003","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000003","section_id":"entry"},"references":["IAS 2 §11"],"exercise":{"prompt":{"fr":"","en":"A furniture store receives a batch of sofas. Supplier invoice: price net of discount 20,000, recoverable VAT 4,000 (case data). Carrier invoice for delivery to the warehouse: 500 (assumption: no VAT). Assumption of the exercise: purchases are recorded directly in inventory. Record the entry for the purchase.","es":""},"explanation":{"fr":"","en":"Inventory is recognised at 20,000 + 500 = 20,500: transport to the warehouse is part of cost and the discount is already deducted (IAS 2, para. 11). Recoverable VAT is a receivable (4,000), excluded from cost. Debits 24,500 = credits 24,500.","es":""},"common_error":{"fr":"","en":"Debiting transport to expense instead of including it in the cost of inventory.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"INVENTORY","text":{"fr":"","en":"Merchandise inventory","es":""}},{"id":"RECOVERABLE_VAT","text":{"fr":"","en":"Recoverable VAT","es":""}},{"id":"SUPPLIER","text":{"fr":"","en":"Sofa supplier","es":""}},{"id":"CARRIER","text":{"fr":"","en":"Carrier","es":""}},{"id":"TRANSPORT_EXPENSE","text":{"fr":"","en":"Transport expense","es":""}},{"id":"DISCOUNT_INCOME","text":{"fr":"","en":"Discount income","es":""}}],"lines":[{"id":"L1","account":"INVENTORY","side":"DEBIT","amount":20500},{"id":"L2","account":"RECOVERABLE_VAT","side":"DEBIT","amount":4000},{"id":"L3","account":"SUPPLIER","side":"CREDIT","amount":24000,"given":["account","side"]},{"id":"L4","account":"CARRIER","side":"CREDIT","amount":500,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000022","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.PURCHASE"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"ELECTRONICS","tested_point":"IMPORT_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IAS2.000003","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000003","section_id":"entry"},"references":["IAS 2 §10","IAS 2 §11"],"exercise":{"prompt":{"fr":"","en":"An electronics assembler imports components. Foreign supplier: 40,000 (net price). Customs authority: customs duties 2,000 (not recoverable) and import VAT 8,400 (recoverable); these tax data are case data. Logistics provider: freight to the plant 1,000. Assumption: recorded directly in inventory. Record the entry.","es":""},"explanation":{"fr":"","en":"Inventory cost = 40,000 + 2,000 of non-recoverable duties + 1,000 freight = 43,000 (IAS 2, paras. 10 and 11). Recoverable import VAT is a receivable of 8,400. The customs authority is credited with duties and VAT (2,000 + 8,400 = 10,400). Debits 51,400 = credits 51,400.","es":""},"common_error":{"fr":"","en":"Expensing customs duties because they are paid to the authorities rather than to the supplier.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"RAW_MATERIALS","text":{"fr":"","en":"Components inventory","es":""}},{"id":"RECOVERABLE_VAT","text":{"fr":"","en":"Recoverable VAT","es":""}},{"id":"SUPPLIER","text":{"fr":"","en":"Foreign supplier","es":""}},{"id":"CUSTOMS","text":{"fr":"","en":"Customs authority","es":""}},{"id":"LOGISTICS","text":{"fr":"","en":"Logistics provider","es":""}},{"id":"DUTIES_EXPENSE","text":{"fr":"","en":"Customs duties expense","es":""}}],"lines":[{"id":"L1","account":"RAW_MATERIALS","side":"DEBIT","amount":43000},{"id":"L2","account":"RECOVERABLE_VAT","side":"DEBIT","amount":8400},{"id":"L3","account":"SUPPLIER","side":"CREDIT","amount":40000,"given":["account"]},{"id":"L4","account":"CUSTOMS","side":"CREDIT","amount":10400},{"id":"L5","account":"LOGISTICS","side":"CREDIT","amount":1000,"given":["account"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000023","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.PURCHASE"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"FOOD","tested_point":"PURCHASE_COST_COMPONENTS","difficulty":"BEGINNER","estimated_time_s":90,"lesson_id":"LS.IAS2.000003","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000003","section_id":"purchase-cost-rule"},"references":["IAS 2 §10","IAS 2 §11","IAS 2 §16"],"exercise":{"prompt":{"fr":"","en":"A cannery buys tomatoes for its production. Classify each item according to its effect on the cost of purchase (whether taxes are recoverable is case data).","es":""},"explanation":{"fr":"","en":"Purchase price, transport and handling are included; discounts and rebates are deducted; recoverable taxes are excluded (IAS 2, para. 11). Storing finished goods awaiting sale occurs after the inventory has reached its intended location and condition: it is excluded (IAS 2, paras. 10 and 16).","es":""},"common_error":{"fr":"","en":"Including deductible VAT or storage of finished cans: recoverable taxes and storage awaiting sale are excluded from cost.","es":""},"format":"CLASSIFICATION","categories":[{"id":"ADDED","text":{"fr":"","en":"Added to cost","es":""}},{"id":"DEDUCTED","text":{"fr":"","en":"Deducted from cost","es":""}},{"id":"EXCLUDED","text":{"fr":"","en":"Excluded from cost","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Price invoiced by the grower","es":""},"category":"ADDED"},{"id":"I2","text":{"fr":"","en":"Volume discount shown on the invoice","es":""},"category":"DEDUCTED"},{"id":"I3","text":{"fr":"","en":"Deductible VAT invoiced","es":""},"category":"EXCLUDED"},{"id":"I4","text":{"fr":"","en":"Refrigerated transport to the plant","es":""},"category":"ADDED"},{"id":"I5","text":{"fr":"","en":"Unloading the crates on receipt","es":""},"category":"ADDED"},{"id":"I6","text":{"fr":"","en":"Rebate obtained for late delivery","es":""},"category":"DEDUCTED"},{"id":"I7","text":{"fr":"","en":"Storage of finished cans awaiting sale","es":""},"category":"EXCLUDED"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000024","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.PURCHASE"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"COSMETICS","tested_point":"PURCHASE_COST_ERRORS","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS2.000003","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000003","section_id":"pitfalls"},"references":["IAS 2 §10","IAS 2 §11"],"exercise":{"prompt":{"fr":"","en":"An accounting assistant at a cosmetics distributor has calculated the cost of a batch of perfume bottles. The tax data are case data. Spot the incorrect steps.","es":""},"explanation":{"fr":"","en":"Costs of purchase comprise the price net of discounts, non-recoverable duties and transport (IAS 2, para. 11), i.e. the costs incurred to bring inventory to its present location and condition (IAS 2, para. 10). Recoverable taxes and selling costs are excluded.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"I added the recoverable VAT of 6,400 to the purchase price, because it was paid to the supplier.","es":""},"erroneous":true,"correction":{"fr":"","en":"A tax recoverable from the taxing authorities is excluded from cost: it is a receivable (IAS 2, para. 11).","es":""}},{"id":"S2","text":{"fr":"","en":"I added transport of 750 between the port and our warehouse.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"The discount of 1,600 obtained on the invoice was recognised as income, without reducing the cost of the batch.","es":""},"erroneous":true,"correction":{"fr":"","en":"Discounts and rebates are deducted in determining costs of purchase (IAS 2, para. 11): the cost of the batch must be reduced by 1,600.","es":""}},{"id":"S4","text":{"fr":"","en":"I included customs duties of 1,200, which we cannot recover.","es":""},"erroneous":false},{"id":"S5","text":{"fr":"","en":"I added the costs of the trade fair where we will present this perfume to our customers.","es":""},"erroneous":true,"correction":{"fr":"","en":"Marketing costs do not bring inventory to its present location and condition: they are not part of cost (IAS 2, para. 10).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000025","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.PURCHASE"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"MANUFACTURING","tested_point":"PURCHASE_COST_COMPONENTS","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS2.000003","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000003","section_id":"judgment"},"references":["IAS 2 §10","IAS 2 §11"],"exercise":{"prompt":{"fr":"","en":"A furniture manufacturer buys a batch of oak panels. Which of the following costs are directly attributable to the acquisition and go into the cost of the batch?","es":""},"explanation":{"fr":"","en":"Costs of purchase include transport, handling and other costs directly attributable to the acquisition (IAS 2, para. 11), i.e. incurred to bring this inventory to its present location and condition (IAS 2, para. 10). Classifying the purchasing department's general costs is a matter of judgment; here, with no link to the batch, they are not included (analysis of the exercise).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Transit insurance for this batch","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Unloading and racking the batch on receipt","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Annual salaries of the purchasing team, which negotiates all the plant's contracts","es":""},"correct":false,"feedback":{"fr":"","en":"This general cost is not linked to this specific batch: in the analysis retained for the exercise (judgment), it is not directly attributable to its acquisition.","es":""}},{"id":"D","text":{"fr":"","en":"Sales catalogue presenting the oak furniture","es":""},"correct":false,"feedback":{"fr":"","en":"A marketing cost does not serve to bring the inventory to its present location and condition (para. 10).","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"LX.IAS2.000026","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.PURCHASE"],"dimension":"APPLICATION","format":"FILL_BLANK","context":"GENERIC","tested_point":"RECOVERABLE_TAX_AND_REBATE","difficulty":"BEGINNER","estimated_time_s":90,"lesson_id":"LS.IAS2.000003","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000003","section_id":"taxes-and-discounts"},"references":["IAS 2 §11"],"exercise":{"prompt":{"fr":"","en":"Complete the reasoning.","es":""},"explanation":{"fr":"","en":"Recoverable taxes are excluded and rebates deducted from costs of purchase; delivery is included (IAS 2, para. 11). Cost = 5,000 − 250 + 150 = 4,900.","es":""},"common_error":{"fr":"","en":"Including recoverable VAT or recording the rebate as income: VAT is excluded and the rebate deducted from cost.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"An entity buys supplies for 5,000, obtains a rebate of 250, pays 950 of recoverable VAT (case data) and 150 for delivery. The VAT is {{tax}} cost and the rebate is {{rebate}} it. The cost of purchase amounts to {{cost}}.","es":""},"blanks":[{"id":"tax","mode":"CHOICE","choices":[{"id":"EXCLUDED","text":{"fr":"","en":"excluded from","es":""}},{"id":"INCLUDED","text":{"fr":"","en":"included in","es":""}}],"answer":"EXCLUDED"},{"id":"rebate","mode":"CHOICE","choices":[{"id":"DEDUCTED","text":{"fr":"","en":"deducted from","es":""}},{"id":"IGNORED","text":{"fr":"","en":"separate from (recognised as income)","es":""}}],"answer":"DEDUCTED"},{"id":"cost","mode":"NUMBER","answer":4900,"tolerance":0}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000027","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.CONVERSION"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"FURNITURE","tested_point":"CONVERSION_COST_SCOPE","difficulty":"BEGINNER","estimated_time_s":75,"lesson_id":"LS.IAS2.000004","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000004","section_id":"conversion-costs"},"references":["IAS 2 §12","IAS 2 §16"],"exercise":{"prompt":{"fr":"","en":"A furniture maker lists its costs for the year. Which of them are costs of conversion of the furniture produced?","es":""},"explanation":{"fr":"","en":"Costs of conversion include direct costs and an allocation of production overheads: equipment maintenance, indirect labour, depreciation of right-of-use assets used in production, factory management (IAS 2, para. 12). The showroom and delivery to customers serve to sell; head-office finance is an administrative overhead: these costs are excluded from the cost of inventories (IAS 2, para. 16).","es":""},"common_error":{"fr":"","en":"Classifying every depreciation charge or management salary as a production overhead, without checking its link with manufacturing.","es":""},"format":"CLASSIFICATION","categories":[{"id":"CONVERSION","text":{"fr":"","en":"Cost of conversion","es":""}},{"id":"NOT_CONVERSION","text":{"fr":"","en":"Not a cost of conversion","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Maintenance of the workshop's cutting machines","es":""},"category":"CONVERSION"},{"id":"I2","text":{"fr":"","en":"Wages of the forklift drivers who supply the assembly lines","es":""},"category":"CONVERSION"},{"id":"I3","text":{"fr":"","en":"Depreciation of the right-of-use asset for the leased workshop where the furniture is made","es":""},"category":"CONVERSION"},{"id":"I4","text":{"fr":"","en":"Salary of the plant manager","es":""},"category":"CONVERSION"},{"id":"I5","text":{"fr":"","en":"Depreciation of the showroom where customers choose their furniture","es":""},"category":"NOT_CONVERSION"},{"id":"I6","text":{"fr":"","en":"Salary of the head-office finance director","es":""},"category":"NOT_CONVERSION"},{"id":"I7","text":{"fr":"","en":"Fuel for the trucks delivering furniture to customers","es":""},"category":"NOT_CONVERSION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000028","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.CONVERSION"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"UNALLOCATED_OVERHEADS_EXPENSED","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS2.000004","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000004","section_id":"low-and-high-production"},"references":["IAS 2 §13"],"exercise":{"prompt":{"fr":"","en":"During a period of low production, fixed production overheads not allocated to the units produced stay in inventories and will be expensed only when the goods are sold.","es":""},"explanation":{"fr":"","en":"False. Unallocated fixed overheads are recognised as an expense in the period in which they are incurred (IAS 2, para. 13): they never enter inventories.","es":""},"common_error":{"fr":"","en":"Believing that every production cost ends up in inventories; the cost of idleness is an expense of the period.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000029","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.CONVERSION"],"dimension":"CALCULATION","format":"CALCULATION","context":"AUTOMOTIVE","tested_point":"LOW_PRODUCTION_ALLOCATION","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS2.000004","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000004","section_id":"low-and-high-production"},"references":["IAS 2 §13"],"exercise":{"prompt":{"fr":"","en":"An automotive supplier makes brake callipers. A carmaker customer has cut its orders: production for the year falls to 180,000 units. Calculate the treatment of fixed production overheads.","es":""},"explanation":{"fr":"","en":"Fixed overheads are allocated on the basis of normal capacity: 960,000 ÷ 240,000 = 4.00 per unit. Low production does not increase this rate: 180,000 × 4.00 = 720,000 is included, and the 240,000 unallocated is recognised as an expense of the period (IAS 2, para. 13).","es":""},"common_error":{"fr":"","en":"Dividing fixed overheads by actual production (960,000 ÷ 180,000 = 5.33): inventories would then carry the cost of idleness.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Fixed production overheads for the year","es":""},"value":"960000","unit":"EUR"},{"label":{"fr":"","en":"Normal capacity (average of recent years, planned maintenance included)","es":""},"value":"240000","unit":"UNITS"},{"label":{"fr":"","en":"Actual production for the year","es":""},"value":"180000","unit":"UNITS"}],"steps":[{"id":"S1","label":{"fr":"","en":"Fixed overhead rate per unit","es":""},"answer":4,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Fixed overheads included in the cost of inventories","es":""},"answer":720000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Unallocated fixed overheads, recognised as an expense","es":""},"answer":240000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Fixed overhead rate per unit","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fixed production overheads for the year","es":""},"value":960000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Normal capacity (average of recent years, planned maintenance included)","es":""},"value":240000,"unit":"UNITS"}],"result":4,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Fixed overheads included in the cost of inventories","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Actual production for the year","es":""},"value":180000,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Fixed overhead rate per unit","es":""},"value":4,"unit":"EUR"}],"result":720000,"unit":"EUR","rationale":{"fr":"","en":"Low production does not increase this rate: 180,000 × 4.00 = 720,000 is included, and the 240,000 unallocated is recognised as an expense of the period (IAS 2, para. 13).","es":""}}],"references":["REF.IAS2.13"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000030","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.CONVERSION"],"dimension":"CALCULATION","format":"CALCULATION","context":"ENERGY","tested_point":"HIGH_PRODUCTION_RATE_DECREASED","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS2.000004","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000004","section_id":"low-and-high-production"},"references":["IAS 2 §13"],"exercise":{"prompt":{"fr":"","en":"A plant making wood pellets for heating has had an exceptionally cold winter: production for the year reaches 60,000 tonnes, a level management judges abnormally high (case data). Calculate.","es":""},"explanation":{"fr":"","en":"Normal rate: 600,000 ÷ 50,000 = 12.00. As production is abnormally high, the amount allocated to each unit is decreased so that inventories are not measured above cost (IAS 2, para. 13): 600,000 ÷ 60,000 = 10.00, i.e. 600,000 included, exactly the overheads incurred. Keeping 12.00 would have allocated 720,000, i.e. 120,000 of costs that do not exist.","es":""},"common_error":{"fr":"","en":"Mechanically applying the normal rate whatever the production level, thereby absorbing more fixed overheads than were incurred.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Fixed production overheads for the year","es":""},"value":"600000","unit":"EUR"},{"label":{"fr":"","en":"Normal capacity (tonnes)","es":""},"value":"50000","unit":"UNITS"},{"label":{"fr":"","en":"Actual production (tonnes)","es":""},"value":"60000","unit":"UNITS"}],"steps":[{"id":"S1","label":{"fr":"","en":"Normal fixed overhead rate per tonne","es":""},"answer":12,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Decreased rate to be used per tonne","es":""},"answer":10,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Fixed overheads included in the cost of inventories","es":""},"answer":600000,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Excess that would have been allocated by keeping the normal rate","es":""},"answer":120000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Normal fixed overhead rate per tonne","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fixed production overheads for the year","es":""},"value":600000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Normal capacity (tonnes)","es":""},"value":50000,"unit":"UNITS"}],"result":12,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Decreased rate to be used per tonne","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fixed production overheads for the year","es":""},"value":600000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Actual production (tonnes)","es":""},"value":60000,"unit":"UNITS"}],"result":10,"unit":"EUR","rationale":{"fr":"","en":"As production is abnormally high, the amount allocated to each unit is decreased so that inventories are not measured above cost (IAS 2, para. 13): 600,000 ÷ 60,000 = 10.00, i.e. 600,000 included, exactly the overheads incurred.","es":""}}],"references":["REF.IAS2.13"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000031","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.CONVERSION"],"dimension":"CALCULATION","format":"CALCULATION","context":"FOOD","tested_point":"FULL_UNIT_PRODUCTION_COST","difficulty":"ADVANCED","estimated_time_s":240,"lesson_id":"LS.IAS2.000004","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000004","section_id":"numeric-example"},"references":["IAS 2 §12","IAS 2 §13"],"exercise":{"prompt":{"fr":"","en":"A cannery produces jars of cooked vegetables. Case assumptions: no opening inventories, no work in progress at year-end, 50,000 jars sold. Calculate the production cost and closing inventories at cost.","es":""},"explanation":{"fr":"","en":"Fixed overhead rate: 320,000 ÷ 80,000 = 4.00; included: 64,000 × 4.00 = 256,000 (IAS 2, para. 13). Production cost: 192,000 + 128,000 + 51,200 + 256,000 = 627,200 (IAS 2, para. 12), i.e. 9.80 per jar. Closing inventories: (64,000 − 50,000) × 9.80 = 137,200. The 320,000 − 256,000 = 64,000 unallocated is an expense of the year (IAS 2, para. 13).","es":""},"common_error":{"fr":"","en":"Including the full 320,000 of fixed overheads in cost: the unit cost would rise to 10.80 and closing inventories would be overstated by 14,000.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Jars produced","es":""},"value":"64000","unit":"UNITS"},{"label":{"fr":"","en":"Normal capacity","es":""},"value":"80000","unit":"UNITS"},{"label":{"fr":"","en":"Direct materials consumed","es":""},"value":"192000","unit":"EUR"},{"label":{"fr":"","en":"Direct labour","es":""},"value":"128000","unit":"EUR"},{"label":{"fr":"","en":"Variable production overheads (actual use)","es":""},"value":"51200","unit":"EUR"},{"label":{"fr":"","en":"Fixed production overheads","es":""},"value":"320000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Fixed overheads included","es":""},"answer":256000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Production cost of the jars","es":""},"answer":627200,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Unit cost","es":""},"answer":9.8,"tolerance":0.001,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Closing inventories at cost (14,000 jars)","es":""},"answer":137200,"tolerance":0,"unit":"EUR"},{"id":"S5","label":{"fr":"","en":"Unallocated fixed overheads, expensed for the year","es":""},"answer":64000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Fixed overheads included","es":""},"expression":"a * (b / c)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Jars produced","es":""},"value":64000,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Fixed production overheads","es":""},"value":320000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Normal capacity","es":""},"value":80000,"unit":"UNITS"}],"result":256000,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Production cost of the jars","es":""},"expression":"a + b + c + d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Direct materials consumed","es":""},"value":192000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Direct labour","es":""},"value":128000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Variable production overheads (actual use)","es":""},"value":51200,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Fixed overheads included","es":""},"value":256000,"unit":"EUR"}],"result":627200,"unit":"EUR"},{"step":"S5","meaning":{"fr":"","en":"Unallocated fixed overheads, expensed for the year","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fixed production overheads","es":""},"value":320000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fixed overheads included","es":""},"value":256000,"unit":"EUR"}],"result":64000,"unit":"EUR"}],"references":["REF.IAS2.12","REF.IAS2.13"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000032","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.CONVERSION"],"dimension":"CALCULATION","format":"CALCULATION","context":"CHEMICALS","tested_point":"JOINT_COST_ALLOCATION","difficulty":"ADVANCED","estimated_time_s":210,"lesson_id":"LS.IAS2.000004","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000004","section_id":"joint-products"},"references":["IAS 2 §14"],"exercise":{"prompt":{"fr":"","en":"A chemicals company obtains two products, A and B, from a single electrolysis process; their costs of conversion are not separately identifiable. Method chosen by the entity (a choice of method, not imposed by the standard): relative sales value at the split-off point. Calculate.","es":""},"explanation":{"fr":"","en":"The costs of a joint process are allocated on a rational and consistent basis, for example relative sales value (IAS 2, para. 14). Sales values: A 40,000 × 9.00 = 360,000; B 20,000 × 12.00 = 240,000; total 600,000. A: 480,000 × 360 / 600 = 288,000 (7.20 / kg); B: 480,000 × 240 / 600 = 192,000 (9.60 / kg). Check: 288,000 + 192,000 = 480,000.","es":""},"common_error":{"fr":"","en":"Allocating on quantities (2/3 – 1/3) while thinking this is the method stated: A would receive 320,000, i.e. 8.00 / kg, and B 160,000.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Common cost of the process","es":""},"value":"480000","unit":"EUR"},{"label":{"fr":"","en":"Product A: quantity (kg) — price at split-off 9.00 / kg","es":""},"value":"40000","unit":"UNITS"},{"label":{"fr":"","en":"Product B: quantity (kg) — price at split-off 12.00 / kg","es":""},"value":"20000","unit":"UNITS"}],"steps":[{"id":"S1","label":{"fr":"","en":"Cost allocated to product A","es":""},"answer":288000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Cost allocated to product B","es":""},"answer":192000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Unit cost of A (per kg)","es":""},"answer":7.2,"tolerance":0.001,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Unit cost of B (per kg)","es":""},"answer":9.6,"tolerance":0.001,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000033","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.CONVERSION"],"dimension":"CALCULATION","format":"CALCULATION","context":"MANUFACTURING","tested_point":"BY_PRODUCT_AT_NRV","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS2.000004","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000004","section_id":"joint-products"},"references":["IAS 2 §14"],"exercise":{"prompt":{"fr":"","en":"A sawmill cuts logs into boards (main product); the sawdust, sold to a pellet maker, is an immaterial by-product. The entity measures the sawdust at net realisable value and deducts it from the cost of the boards. Calculate.","es":""},"explanation":{"fr":"","en":"An immaterial by-product is often measured at net realisable value, and this amount is deducted from the cost of the main product (IAS 2, para. 14): 250,000 − 10,000 = 240,000, i.e. 240,000 ÷ 12,000 = 20.00 per board. The carrying amount of the boards thus does not differ materially from their cost.","es":""},"common_error":{"fr":"","en":"Ignoring the by-product (unit cost 20.83) or allocating it a share of the common cost as if it were a main product, although it is immaterial.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Total cost of sawing the batch","es":""},"value":"250000","unit":"EUR"},{"label":{"fr":"","en":"Net realisable value of the sawdust","es":""},"value":"10000","unit":"EUR"},{"label":{"fr":"","en":"Boards obtained","es":""},"value":"12000","unit":"UNITS"}],"steps":[{"id":"S1","label":{"fr":"","en":"Cost allocated to the boards","es":""},"answer":240000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Unit cost of a board","es":""},"answer":20,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Cost allocated to the boards","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Total cost of sawing the batch","es":""},"value":250000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Net realisable value of the sawdust","es":""},"value":10000,"unit":"EUR"}],"result":240000,"unit":"EUR","rationale":{"fr":"","en":"An immaterial by-product is often measured at net realisable value, and this amount is deducted from the cost of the main product (IAS 2, para. 14): 250,000 − 10,000 = 240,000, i.e. 240,000 ÷ 12,000 = 20.00 per board.","es":""}},{"step":"S2","meaning":{"fr":"","en":"Unit cost of a board","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost allocated to the boards","es":""},"value":240000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Boards obtained","es":""},"value":12000,"unit":"UNITS"}],"result":20,"unit":"EUR","rationale":{"fr":"","en":"An immaterial by-product is often measured at net realisable value, and this amount is deducted from the cost of the main product (IAS 2, para. 14): 250,000 − 10,000 = 240,000, i.e. 240,000 ÷ 12,000 = 20.00 per board.","es":""}}],"references":["REF.IAS2.14"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000034","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.CONVERSION"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"TEXTILE","tested_point":"LOW_PRODUCTION_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IAS2.000004","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000004","section_id":"entry"},"references":["IAS 2 §13","IAS 2 §38"],"exercise":{"prompt":{"fr":"","en":"A household linen maker has accumulated 1,000,000 of production costs in work in progress: 700,000 of direct costs and variable overheads, and 300,000 of fixed overheads. Normal capacity: 100,000 sets; actual production: 80,000 sets, all finished (case assumption). Record the entry transferring out of work in progress; the credit line is given.","es":""},"explanation":{"fr":"","en":"Rate: 300,000 ÷ 100,000 = 3.00; fixed overheads included: 80,000 × 3.00 = 240,000 (IAS 2, para. 13). Finished goods: 700,000 + 240,000 = 940,000. The 60,000 unallocated is an expense of the period (IAS 2, para. 13), presented here in cost of sales (IAS 2, para. 38). Total: 940,000 + 60,000 = 1,000,000.","es":""},"common_error":{"fr":"","en":"Transferring the full 1,000,000 to finished goods, or putting the 60,000 in prepaid expenses to 'recover' it next year.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"FINISHED_GOODS","text":{"fr":"","en":"Finished goods inventory","es":""}},{"id":"UNALLOCATED_OVERHEADS","text":{"fr":"","en":"Cost of sales — unallocated fixed overheads (low production)","es":""}},{"id":"WIP","text":{"fr":"","en":"Work in progress","es":""}},{"id":"PREPAID","text":{"fr":"","en":"Prepaid expenses","es":""}},{"id":"WRITE_DOWN","text":{"fr":"","en":"Inventory write-down (contra account)","es":""}}],"lines":[{"id":"L1","account":"FINISHED_GOODS","side":"DEBIT","amount":940000},{"id":"L2","account":"UNALLOCATED_OVERHEADS","side":"DEBIT","amount":60000},{"id":"L3","account":"WIP","side":"CREDIT","amount":1000000,"given":["account","side","amount"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000035","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.CONVERSION"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"FOOD","tested_point":"JOINT_PRODUCTS_ENTRY","difficulty":"ADVANCED","estimated_time_s":240,"lesson_id":"LS.IAS2.000004","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000004","section_id":"joint-products"},"references":["IAS 2 §14"],"exercise":{"prompt":{"fr":"","en":"A dairy skims raw milk: the same process, at a common cost of 150,000 (recorded in work in progress), yields cream and skimmed milk, plus filtration residues sold as animal feed (an immaterial by-product, net realisable value 6,000). Sales values at the split-off point: cream 120,000, skimmed milk 60,000. Entity method (a choice of method): by-product deducted at net realisable value and recognised in inventories, balance allocated on relative sales value. Record the entry.","es":""},"explanation":{"fr":"","en":"The immaterial by-product is measured at net realisable value, deducted from the common cost (IAS 2, para. 14): 150,000 − 6,000 = 144,000 to allocate. Rational and consistent basis used: relative sales value (IAS 2, para. 14). Cream: 144,000 × 120 / 180 = 96,000; skimmed milk: 144,000 × 60 / 180 = 48,000. Total debits: 96,000 + 48,000 + 6,000 = 150,000.","es":""},"common_error":{"fr":"","en":"Allocating the full 150,000 between cream and skimmed milk (100,000 and 50,000) and then recognising the sale of residues as other income: the cost of the main products would be overstated.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"CREAM","text":{"fr":"","en":"Inventories — cream","es":""}},{"id":"SKIMMED_MILK","text":{"fr":"","en":"Inventories — skimmed milk","es":""}},{"id":"BY_PRODUCT","text":{"fr":"","en":"Inventories — residues (by-product)","es":""}},{"id":"WIP","text":{"fr":"","en":"Work in progress","es":""}},{"id":"OTHER_INCOME","text":{"fr":"","en":"Other income","es":""}}],"lines":[{"id":"L1","account":"CREAM","side":"DEBIT","amount":96000},{"id":"L2","account":"SKIMMED_MILK","side":"DEBIT","amount":48000},{"id":"L3","account":"BY_PRODUCT","side":"DEBIT","amount":6000},{"id":"L4","account":"WIP","side":"CREDIT","amount":150000,"given":["account","side","amount"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000036","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.CONVERSION"],"dimension":"APPLICATION","format":"CLASSIFICATION","context":"TEXTILE","tested_point":"INVENTORY_OR_PERIOD_EXPENSE","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS2.000004","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000004","section_id":"low-and-high-production"},"references":["IAS 2 §12","IAS 2 §13"],"exercise":{"prompt":{"fr":"","en":"A spinning mill has had a three-month strike. For each amount, state whether it enters the cost of the yarn produced or is an expense of the period.","es":""},"explanation":{"fr":"","en":"Direct costs and variable overheads (machine energy) follow actual production, and fixed overheads are allocated at the normal-capacity rate (IAS 2, paras. 12 and 13). The part of fixed overheads that finds no units produced — the strike stoppage, unused capacity — is not loaded onto the other units: it is recognised as an expense of the period (IAS 2, para. 13).","es":""},"common_error":{"fr":"","en":"Thinking that plant depreciation always enters inventories in full because it is a production cost.","es":""},"format":"CLASSIFICATION","categories":[{"id":"INVENTORY","text":{"fr":"","en":"Cost of inventories","es":""}},{"id":"EXPENSE","text":{"fr":"","en":"Expense of the period","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Share of fixed overheads at the normal-capacity rate on the reels produced","es":""},"category":"INVENTORY"},{"id":"I2","text":{"fr":"","en":"Fixed overheads not absorbed because the machines stood idle during the strike","es":""},"category":"EXPENSE"},{"id":"I3","text":{"fr":"","en":"Electricity consumed by the machines during the production months","es":""},"category":"INVENTORY"},{"id":"I4","text":{"fr":"","en":"Wages of the spinners for the hours actually worked in production","es":""},"category":"INVENTORY"},{"id":"I5","text":{"fr":"","en":"Depreciation of the plant corresponding to the unused part of normal capacity","es":""},"category":"EXPENSE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000037","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.CONVERSION"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"ELECTRONICS","tested_point":"LOW_PRODUCTION_ALLOCATION","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS2.000004","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000004","section_id":"pitfalls"},"references":["IAS 2 §12","IAS 2 §13"],"exercise":{"prompt":{"fr":"","en":"The management accountant of an electronic board assembler writes up the cost calculation memo. Spot the erroneous statements.","es":""},"explanation":{"fr":"","en":"Costs of conversion comprise direct labour and a systematic allocation of fixed and variable overheads (IAS 2, para. 12). Variable overheads follow actual use; fixed overheads are allocated on normal capacity, with no increase in the rate during low production, and the unallocated part is an expense of the period (IAS 2, para. 13).","es":""},"common_error":{"fr":"","en":"Reasoning that 'all fixed overheads must be absorbed by the year's production', which inflates unit cost during low production.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"Our fixed production overheads for the year amount to 400,000 and our normal capacity is 100,000 boards.","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"As we produced only 80,000 boards, we allocate 400,000 ÷ 80,000 = 5.00 of fixed overheads per board.","es":""},"erroneous":true,"correction":{"fr":"","en":"The rate stays at the normal-capacity rate: 400,000 ÷ 100,000 = 4.00 per board, i.e. 320,000 included (IAS 2, para. 13).","es":""}},{"id":"S3","text":{"fr":"","en":"Variable overheads are allocated to the boards on the basis of the actual use of the facilities.","es":""},"erroneous":false},{"id":"S4","text":{"fr":"","en":"The difference between fixed overheads incurred and those allocated is kept in inventories to be absorbed next year, when activity picks up.","es":""},"erroneous":true,"correction":{"fr":"","en":"The 80,000 of unallocated fixed overheads is recognised as an expense of the period (IAS 2, para. 13).","es":""}},{"id":"S5","text":{"fr":"","en":"Direct labour of the assembly-line operators is included in the production cost.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000038","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.CONVERSION"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"PAPER","tested_point":"NORMAL_CAPACITY_AND_JOINT_BASIS","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS2.000004","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000004","section_id":"judgment"},"references":["IAS 2 §13","IAS 2 §14"],"exercise":{"prompt":{"fr":"","en":"A paper mill produces, on the same line and at the same time, two grades of paper whose costs are not separately identifiable. Here are the costing principles written by its finance director. Spot the erroneous statements.","es":""},"explanation":{"fr":"","en":"Normal capacity takes planned maintenance into account, and abnormally high production leads to a decreased rate (IAS 2, para. 13). For joint production, the allocation basis must be rational and consistent; relative sales value is only an example, and an immaterial by-product is often measured at net realisable value, deducted from the cost of the main product (IAS 2, para. 14).","es":""},"common_error":{"fr":"","en":"Taking the standard's example for a requirement or, conversely, treating the allocation basis as a free parameter from one year to the next.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"We use as normal capacity the maximum rated capacity of the paper machine, 150,000 tonnes, without taking scheduled maintenance stoppages into account.","es":""},"erroneous":true,"correction":{"fr":"","en":"Normal capacity is the average production expected over a number of periods under normal circumstances, taking planned maintenance into account (IAS 2, para. 13).","es":""}},{"id":"S2","text":{"fr":"","en":"IAS 2 requires the common cost of our two grades of paper to be allocated according to their relative sales value; no other basis is allowed.","es":""},"erroneous":true,"correction":{"fr":"","en":"The standard requires a rational and consistent basis; relative sales value is an example, not the only possible basis (IAS 2, para. 14).","es":""}},{"id":"S3","text":{"fr":"","en":"The pulp waste we sell, which is immaterial, is measured at net realisable value, and this amount is deducted from the cost of the main production.","es":""},"erroneous":false},{"id":"S4","text":{"fr":"","en":"When production is abnormally high in a given year, we decrease the fixed overhead rate per tonne.","es":""},"erroneous":false},{"id":"S5","text":{"fr":"","en":"This year we allocate the common cost on tonnages; last year, on sales values: each year we choose the basis that gives the best margin.","es":""},"erroneous":true,"correction":{"fr":"","en":"The allocation basis must be applied consistently, not chosen each year according to the desired result (IAS 2, para. 14).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000039","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.CONVERSION"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"PACKAGING","tested_point":"NORMAL_CAPACITY_DETERMINATION","difficulty":"EXPERT","estimated_time_s":480,"lesson_id":"LS.IAS2.000004","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000004","section_id":"judgment"},"references":["IAS 2 §13"],"exercise":{"prompt":{"fr":"","en":"Determine Capsulor's normal capacity and its consequences for the cost of inventories in year N.","es":""},"explanation":{"fr":"","en":"Normal capacity is derived from the average production expected under normal circumstances, planned maintenance included; a low-production year is not part of it and does not change the rate; unallocated overheads are expenses of the period (IAS 2, para. 13).","es":""},"common_error":{"fr":"","en":"Confusing normal capacity with rated capacity, or letting an exceptional year shift normal capacity.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Capsulor (a fictitious entity) makes metal caps for the beverage industry. In N, the loss of a brewery customer caused its production to fall. Management considers that activity will return to its usual level in N+1 thanks to new contracts already signed (case data). The finance director is unsure which normal capacity to use to allocate N's fixed overheads.","es":""},"exhibits":[{"title":{"fr":"","en":"Production history (case data, in thousands of caps)","es":""},"body":{"fr":"","en":"N-4: 98,000; N-3: 102,000; N-2: 101,000; N-1: 99,000. These years include the maintenance stoppages scheduled every summer, and no unusual events. Rated capacity of the lines, running continuously with no stoppage at all: 130,000. Production in N: 70,000.","es":""}},{"title":{"fr":"","en":"Fixed production overheads for N (case data)","es":""},"body":{"fr":"","en":"EUR 500,000 (depreciation of the presses, maintenance, plant supervision).","es":""}}],"parts":[{"prompt":{"fr":"","en":"Which normal capacity (in thousands of caps) is the most defensible for N?","es":""},"explanation":{"fr":"","en":"Normal capacity is the average production expected over a number of periods under normal circumstances, taking planned maintenance into account (IAS 2, para. 13). The four previous years, maintenance included and with no unusual events, give (98,000 + 102,000 + 101,000 + 99,000) ÷ 4 = 100,000. The choice of years remains a judgment to be documented (contracts signed for N+1, history).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"130,000, the rated capacity","es":""},"correct":false,"feedback":{"fr":"","en":"Rated capacity ignores planned maintenance stoppages and matches no production actually expected.","es":""}},{"id":"B","text":{"fr":"","en":"100,000, the average of the last four years","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"70,000, actual production in N","es":""},"correct":false,"feedback":{"fr":"","en":"Using the production of a low-production year would make inventories absorb the cost of idleness; it does not approximate normal capacity.","es":""}},{"id":"D","text":{"fr":"","en":"94,000, the average from N-4 to N","es":""},"correct":false,"feedback":{"fr":"","en":"Including the abnormal year in the average pulls capacity down, whereas the circumstances of N are not normal and are expected to be temporary.","es":""}}],"id":"P1","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"With a normal capacity of 100,000 thousand caps, calculate (rate expressed in euros per thousand caps).","es":""},"explanation":{"fr":"","en":"500,000 ÷ 100,000 = 5.00 per thousand; 70,000 × 5.00 = 350,000 included; 500,000 − 350,000 = 150,000 of unallocated overheads, expensed in N (IAS 2, para. 13).","es":""},"common_error":{"fr":"","en":"Dividing fixed overheads by actual output (70,000): the rate is based on normal capacity; the unallocated excess is expensed.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Fixed overheads for N","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Production in N (thousands)","es":""},"value":"70000","unit":"UNITS"}],"steps":[{"id":"S1","label":{"fr":"","en":"Rate per thousand caps","es":""},"answer":5,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Fixed overheads included","es":""},"answer":350000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Unallocated fixed overheads (expense for N)","es":""},"answer":150000,"tolerance":0,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION","formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Fixed overheads included","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Production in N (thousands)","es":""},"value":70000,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Rate per thousand caps","es":""},"value":5,"unit":"EUR"}],"result":350000,"unit":"EUR"},{"step":"S3","meaning":{"fr":"","en":"Unallocated fixed overheads (expense for N)","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fixed overheads for N","es":""},"value":500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fixed overheads included","es":""},"value":350000,"unit":"EUR"}],"result":150000,"unit":"EUR"}],"references":["REF.IAS2.13"]}},{"prompt":{"fr":"","en":"If production in N had been 98,000 thousand, IAS 2 would have required the actual level to be used since the gap with normal capacity is below 5%.","es":""},"explanation":{"fr":"","en":"False. The standard allows the actual level of production to be used if it approximates normal capacity (IAS 2, para. 13): it is an option, not a requirement, and no numerical threshold is set. Assessing proximity is a judgment to be documented.","es":""},"common_error":{"fr":"","en":"Seeing actual output close to capacity as a quantified obligation: it is an option, with no threshold, to be judged.","es":""},"format":"TRUE_FALSE","answer":false,"id":"P3","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000040","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.CONVERSION"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"AGRIFOOD","tested_point":"JOINT_COST_BASIS","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS2.000004","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000004","section_id":"joint-products"},"references":["IAS 2 §14"],"exercise":{"prompt":{"fr":"","en":"An oil mill crushes rapeseed: the same process yields oil and meal, two significant products whose costs of conversion are not separately identifiable. How should the common cost be treated?","es":""},"explanation":{"fr":"","en":"When the costs of conversion of joint products are not separately identifiable, they are allocated between the products on a rational and consistent basis, for example relative sales value (IAS 2, para. 14). The net-realisable-value treatment, deducted from the cost of the main product, concerns by-products, which are generally immaterial; the meal, material here (case data), receives its share of the common cost.","es":""},"common_error":{"fr":"","en":"Treating a significant joint product as mere waste, or adapting the allocation basis to the expected result.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is allocated entirely to the oil, the most profitable product, with the meal recognised at nil cost","es":""},"correct":false,"feedback":{"fr":"","en":"The meal is significant: it receives its share of the common cost.","es":""}},{"id":"B","text":{"fr":"","en":"It is allocated on a rational and consistent basis, for example the relative sales value of each product","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It is expensed, since it cannot be identified by product","es":""},"correct":false,"feedback":{"fr":"","en":"Being unable to identify costs by product calls for an allocation, not an expense.","es":""}},{"id":"D","text":{"fr":"","en":"It is allocated each year using whichever basis best smooths the oil's margin","es":""},"correct":false,"feedback":{"fr":"","en":"The basis must be consistent over time, not chosen according to the desired result.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000041","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.OTHER_AND_EXCLUDED"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"MANUFACTURING","tested_point":"INCLUDED_OR_EXCLUDED_COST","difficulty":"BEGINNER","estimated_time_s":75,"lesson_id":"LS.IAS2.000005","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000005","section_id":"excluded-costs"},"references":["IAS 2 §10","IAS 2","IAS 2 §16"],"exercise":{"prompt":{"fr":"","en":"A maker of industrial pumps is analysing the costs of the year. Classify each cost: included in the cost of inventories or recognised as an expense of the period?","es":""},"explanation":{"fr":"","en":"Costs that bring inventories to their present location and condition are included (IAS 2, para. 10), including the design of products for specific customers (IAS 2, para. 15). Storage of finished products, selling costs, unrelated administrative overheads and abnormal waste are excluded and expensed (IAS 2, para. 16).","es":""},"common_error":{"fr":"","en":"Excluding everything that is not strictly 'workshop', including design for a specific customer, or including the storage of finished goods because it concerns inventories.","es":""},"format":"CLASSIFICATION","categories":[{"id":"INCLUDED","text":{"fr":"","en":"Included in cost","es":""}},{"id":"EXPENSE","text":{"fr":"","en":"Expense of the period","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Moving machined pump casings from the foundry workshop to the assembly workshop","es":""},"category":"INCLUDED"},{"id":"I2","text":{"fr":"","en":"Designing a pump version adapted to a specific customer's specifications","es":""},"category":"INCLUDED"},{"id":"I3","text":{"fr":"","en":"Rent of the warehouse where finished pumps await orders","es":""},"category":"EXPENSE"},{"id":"I4","text":{"fr":"","en":"Commissions paid to sales agents","es":""},"category":"EXPENSE"},{"id":"I5","text":{"fr":"","en":"Audit fees for the group's accounts","es":""},"category":"EXPENSE"},{"id":"I6","text":{"fr":"","en":"Entire batch of parts scrapped after a machine programming error","es":""},"category":"EXPENSE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000042","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.OTHER_AND_EXCLUDED"],"dimension":"APPLICATION","format":"CLASSIFICATION","context":"FOOD","tested_point":"NECESSARY_STORAGE_AND_LOSSES","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS2.000005","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000005","section_id":"excluded-costs"},"references":["IAS 2 §16"],"exercise":{"prompt":{"fr":"","en":"A wine estate ages its wines in barrels before bottling. Classify each item: included in the cost of the wine or an expense of the period?","es":""},"explanation":{"fr":"","en":"Barrel ageing is storage necessary to the process before a further stage (bottling): it is included (IAS 2, para. 16). The standard only excludes abnormal amounts of waste: reading by inference, normal evaporation stays in the cost of the remaining wine. The accidental contamination (an abnormal amount), storage awaiting sale and promotional tastings are expenses (IAS 2, para. 16).","es":""},"common_error":{"fr":"","en":"Excluding all storage and all losses: only storage not necessary to the process and abnormal losses are excluded.","es":""},"format":"CLASSIFICATION","categories":[{"id":"INCLUDED","text":{"fr":"","en":"Included in cost","es":""}},{"id":"EXPENSE","text":{"fr":"","en":"Expense of the period","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Cellar costs during the 18 months of barrel ageing required by the appellation, before bottling","es":""},"category":"INCLUDED"},{"id":"I2","text":{"fr":"","en":"Normal evaporation of the wine during ageing, inherent in the process","es":""},"category":"INCLUDED"},{"id":"I3","text":{"fr":"","en":"Entire vat lost after accidental contamination","es":""},"category":"EXPENSE"},{"id":"I4","text":{"fr":"","en":"Storage of bottles ready for sale in a rented warehouse, awaiting orders","es":""},"category":"EXPENSE"},{"id":"I5","text":{"fr":"","en":"Tastings organised for wine merchants and the press","es":""},"category":"EXPENSE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000043","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.OTHER_AND_EXCLUDED"],"dimension":"CALCULATION","format":"CALCULATION","context":"AGRIFOOD","tested_point":"BATCH_COST_WITH_EXCLUSIONS","difficulty":"INTERMEDIATE","estimated_time_s":210,"lesson_id":"LS.IAS2.000005","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000005","section_id":"numeric-example"},"references":["IAS 2","IAS 2 §16"],"exercise":{"prompt":{"fr":"","en":"An oil mill produces a batch of 10,000 bottles of olive oil. Calculate the cost of the batch, the unit cost and the amount recognised as an expense of the period.","es":""},"explanation":{"fr":"","en":"Cost of the batch: (42,000 − 2,000) + 18,000 + 12,000 + 1,500 = 71,500, since design for a specific customer may be included (IAS 2, para. 15); i.e. 7.15 per bottle. Expenses: abnormal loss 2,000 + storage of finished products 1,200 + commissions 3,000 = 6,200 (IAS 2, para. 16). Check: 71,500 + 6,200 = 77,700, total costs.","es":""},"common_error":{"fr":"","en":"Leaving the 2,000 abnormal loss in cost (unit cost 7.35) or adding post-production storage to it.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Olives and materials consumed, of which 2,000 of olives lost in a press breakdown (abnormal loss, case data)","es":""},"value":"42000","unit":"EUR"},{"label":{"fr":"","en":"Direct labour","es":""},"value":"18000","unit":"EUR"},{"label":{"fr":"","en":"Production overheads allocated (normal capacity)","es":""},"value":"12000","unit":"EUR"},{"label":{"fr":"","en":"Design of an exclusive label and bottle for a retail customer","es":""},"value":"1500","unit":"EUR"},{"label":{"fr":"","en":"Storage of finished bottles awaiting orders","es":""},"value":"1200","unit":"EUR"},{"label":{"fr":"","en":"Sales representatives' commissions","es":""},"value":"3000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Cost of the batch","es":""},"answer":71500,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Unit cost of a bottle","es":""},"answer":7.15,"tolerance":0.001,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Amount recognised as an expense of the period","es":""},"answer":6200,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000044","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.OTHER_AND_EXCLUDED"],"dimension":"CALCULATION","format":"CALCULATION","context":"RETAIL","tested_point":"DEFERRED_SETTLEMENT_FINANCING","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS2.000005","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000005","section_id":"deferred-settlement"},"references":["IAS 2 §18"],"exercise":{"prompt":{"fr":"","en":"A household appliance retailer buys a batch of refrigerators on 1 July N. Price for normal credit terms: 80,000; the supplier accepts payment of 84,000 on 30 June N+1. Reporting date: 31 December. Assumption used by the entity (a method to be stated, not imposed by IAS 2): straight-line allocation of the interest expense over the 12 months. Calculate.","es":""},"explanation":{"fr":"","en":"The difference between the price for normal credit terms and the amount paid, 84,000 − 80,000 = 4,000, is a financing element recognised as interest expense over the period of the financing (IAS 2, para. 18); inventories are recognised at 80,000. With the straight-line allocation used as an assumption: 6 months in N = 2,000, 6 months in N+1 = 2,000.","es":""},"common_error":{"fr":"","en":"Recognising inventories at 84,000, or expensing the 4,000 at the purchase date instead of spreading it over the period of the financing.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Price for normal credit terms","es":""},"value":"80000","unit":"EUR"},{"label":{"fr":"","en":"Amount paid on 30 June N+1","es":""},"value":"84000","unit":"EUR"},{"label":{"fr":"","en":"Period of the financing","es":""},"value":"12","unit":"MONTHS"}],"steps":[{"id":"S1","label":{"fr":"","en":"Cost of inventories","es":""},"answer":80000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Financing element","es":""},"answer":4000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Interest expense for N","es":""},"answer":2000,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Interest expense for N+1","es":""},"answer":2000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Financing element","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Amount paid on 30 June N+1","es":""},"value":84000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Price for normal credit terms","es":""},"value":80000,"unit":"EUR"}],"result":4000,"unit":"EUR","rationale":{"fr":"","en":"The difference between the price for normal credit terms and the amount paid, 84,000 − 80,000 = 4,000, is a financing element recognised as interest expense over the period of the financing (IAS 2, para. 18)","es":""}}],"references":["REF.IAS2.18"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000045","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.OTHER_AND_EXCLUDED"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"AUTOMOTIVE","tested_point":"DEFERRED_SETTLEMENT_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS2.000005","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000005","section_id":"entry"},"references":["IAS 2 §18"],"exercise":{"prompt":{"fr":"","en":"On 2 January N a car dealer buys vehicles held for resale. Price for normal credit terms: 120,000; the manufacturer agrees to be paid 126,000 on 31 December N, the reporting date. Record the summary entry for year N before payment (purchase and interest expense); the supplier line is given.","es":""},"explanation":{"fr":"","en":"Inventories are recognised at the price for normal credit terms, 120,000. The 6,000 difference is a financing element recognised as interest expense over the period of the financing (IAS 2, para. 18), here the whole of year N since the due date coincides with the reporting date. Debits 120,000 + 6,000 = credit 126,000.","es":""},"common_error":{"fr":"","en":"Debiting inventories with 126,000: the vehicles would be overstated and the finance cost would disappear.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"INVENTORY","text":{"fr":"","en":"Vehicle inventories","es":""}},{"id":"INTEREST_EXPENSE","text":{"fr":"","en":"Interest expense","es":""}},{"id":"PAYABLES","text":{"fr":"","en":"Trade payable","es":""}},{"id":"CASH","text":{"fr":"","en":"Cash","es":""}},{"id":"PREPAID","text":{"fr":"","en":"Prepaid expenses","es":""}}],"lines":[{"id":"L1","account":"INVENTORY","side":"DEBIT","amount":120000},{"id":"L2","account":"INTEREST_EXPENSE","side":"DEBIT","amount":6000},{"id":"L3","account":"PAYABLES","side":"CREDIT","amount":126000,"given":["account","side","amount"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000046","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.OTHER_AND_EXCLUDED"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"TEXTILE","tested_point":"POST_PRODUCTION_COSTS_EXCLUDED","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS2.000005","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000005","section_id":"pitfalls"},"references":["IAS 2","IAS 2 §16"],"exercise":{"prompt":{"fr":"","en":"A ready-to-wear brand manufactures its collections in its own workshop. Here is the memo describing how the cost of its inventories is calculated. Spot the erroneous statements.","es":""},"explanation":{"fr":"","en":"Design for a specific customer may be included (IAS 2, para. 15). Post-production storage, unless necessary before a further stage, selling costs and abnormal amounts of waste are excluded (IAS 2, para. 16); normal offcuts, not covered by that exclusion, remain in cost (reading by inference).","es":""},"common_error":{"fr":"","en":"Reasoning 'this cost concerns these garments, so it enters their cost', instead of asking whether it brought them to their location and condition.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"The cost of the garments includes fabric, sewing labour and a share of the workshop overheads.","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"We add to cost the rent of the warehouse where finished garments wait for the start of the selling season.","es":""},"erroneous":true,"correction":{"fr":"","en":"This storage takes place after production is complete and is not necessary before a further stage: it is excluded and expensed (IAS 2, para. 16).","es":""}},{"id":"S3","text":{"fr":"","en":"The costs of the fashion show presenting the collection are included in inventories, since they serve to sell these garments.","es":""},"erroneous":true,"correction":{"fr":"","en":"Serving to sell is precisely what excludes a cost: selling costs are expenses (IAS 2, para. 16).","es":""}},{"id":"S4","text":{"fr":"","en":"The cost of designing a capsule collection made at the request of a specific retailer is included in the inventories of that collection.","es":""},"erroneous":false},{"id":"S5","text":{"fr":"","en":"Normal fabric offcuts from cutting remain in the cost of the garments; a whole roll ruined by a cutting error is expensed.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000047","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.OTHER_AND_EXCLUDED"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"ELECTRONICS","tested_point":"FINANCING_NOT_IN_COST","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS2.000005","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000005","section_id":"deferred-settlement"},"references":["IAS 2","IAS 2 §18"],"exercise":{"prompt":{"fr":"","en":"A distributor of electronic components documents how it treats its financed purchases. Spot the erroneous statements.","es":""},"explanation":{"fr":"","en":"When deferred settlement contains a financing element, that element is interest expense over the period of the financing (IAS 2, para. 18) and, as a teaching consequence, it is not part of the cost of inventories. Allocation over time is a method to be stated. For borrowing costs, IAS 2 refers to IAS 23 (IAS 2, para. 17).","es":""},"common_error":{"fr":"","en":"Confusing the extra for deferred settlement (para. 18) with borrowing costs (referral to IAS 23, para. 17), or asserting an IAS 23 rule without analysing it.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"Our supplier gives us 12 months to pay, at a price of 104,000 instead of 100,000 on normal credit terms: we recognise inventories at 104,000.","es":""},"erroneous":true,"correction":{"fr":"","en":"Inventories are recognised at 100,000; the 4,000 is a financing element recognised as interest expense over the period of the financing (IAS 2, para. 18).","es":""}},{"id":"S2","text":{"fr":"","en":"The 4,000 difference is recognised as interest expense over the period of the financing.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"Interest on our bank credit line can never enter the cost of our inventories, because IAS 2 expressly prohibits it.","es":""},"erroneous":true,"correction":{"fr":"","en":"IAS 2 does not lay down a prohibition: it refers to IAS 23, which identifies the limited circumstances in which borrowing costs are included in the cost of inventories (IAS 2, para. 17). The analysis is carried out under IAS 23.","es":""}},{"id":"S4","text":{"fr":"","en":"At our interim reporting date, we spread the financing element on a straight-line basis over the credit period; this method is stated in our accounting policies.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000048","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.OTHER_AND_EXCLUDED"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"FOOD","tested_point":"NECESSARY_STORAGE_AND_LOSSES","difficulty":"ADVANCED","estimated_time_s":480,"lesson_id":"LS.IAS2.000005","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000005","section_id":"judgment"},"references":["IAS 2 §10","IAS 2 §16"],"exercise":{"prompt":{"fr":"","en":"Determine the cost of Fromagerie Valcombe's batch of wheels and the amount to be recognised as an expense.","es":""},"explanation":{"fr":"","en":"Single criterion: does the cost bring the inventories to their present location and condition (IAS 2, para. 10)? The required maturing does; the abnormal loss, waiting for orders and promotion do not (IAS 2, para. 16).","es":""},"common_error":{"fr":"","en":"Treating any time in the cellar as production, or forgetting to remove from cost the abnormal loss already included in the amounts.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Fromagerie Valcombe (a fictitious entity) makes a pressed cheese whose specifications require six months of cellar maturing before cutting and packaging. During the maturing of a batch of 2,000 wheels, a humidity regulator failure destroyed 80 wheels (an abnormal event, case data). The remaining 1,920 matured wheels then wait in a cold room for distributors' orders.","es":""},"exhibits":[{"title":{"fr":"","en":"Batch costs (case data, in euros)","es":""},"body":{"fr":"","en":"Milk and ingredients: 60,000. Manufacturing labour: 25,000. Cellar costs during the six months of maturing (energy, cellar staff, depreciation of the cellars): 15,000. Cost of the 80 destroyed wheels, already included in the three previous amounts: 4,000. Cold room after maturing, awaiting orders: 3,000. Participation in a trade fair: 2,500.","es":""}}],"parts":[{"prompt":{"fr":"","en":"Classify each item.","es":""},"explanation":{"fr":"","en":"The maturing required before cutting is storage necessary to the process before a further stage: it is included. The abnormal loss, storage awaiting sale and the trade fair (selling) are excluded (IAS 2, para. 16).","es":""},"common_error":{"fr":"","en":"Expensing the ripening or including the cold room: storage necessary before a further production stage is included, storage awaiting sale is not.","es":""},"format":"CLASSIFICATION","categories":[{"id":"INCLUDED","text":{"fr":"","en":"Included in the batch cost","es":""}},{"id":"EXPENSE","text":{"fr":"","en":"Expense of the period","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Cellar costs during the six months of maturing","es":""},"category":"INCLUDED"},{"id":"I2","text":{"fr":"","en":"Cost of the 80 wheels destroyed by the failure","es":""},"category":"EXPENSE"},{"id":"I3","text":{"fr":"","en":"Cold room after maturing, awaiting orders","es":""},"category":"EXPENSE"},{"id":"I4","text":{"fr":"","en":"Trade fair","es":""},"category":"EXPENSE"}],"id":"P1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"Calculate the amounts.","es":""},"explanation":{"fr":"","en":"Cost: 60,000 + 25,000 + 15,000 − 4,000 (abnormal loss, already included) = 96,000, i.e. 96,000 ÷ 1,920 = 50.00 per wheel. Expenses: 4,000 + 3,000 + 2,500 = 9,500 (IAS 2, para. 16). Check: 96,000 + 9,500 = 105,500, total costs.","es":""},"common_error":{"fr":"","en":"Leaving the abnormal loss in the batch cost: the wheels destroyed by the breakdown are an expense of the period.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Remaining wheels","es":""},"value":"1920","unit":"UNITS"}],"steps":[{"id":"S1","label":{"fr":"","en":"Cost of the batch of 1,920 wheels","es":""},"answer":96000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Cost per wheel","es":""},"answer":50,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Amount expensed in the period","es":""},"answer":9500,"tolerance":0,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION","formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Cost per wheel","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the batch of 1,920 wheels","es":""},"value":96000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Remaining wheels","es":""},"value":1920,"unit":"UNITS"}],"result":50,"unit":"EUR"}],"rationale":{"fr":"","en":"Expenses: 4,000 + 3,000 + 2,500 = 9,500 (IAS 2, para. 16).","es":""},"references":["REF.IAS2.16"]}},{"prompt":{"fr":"","en":"As sales are slow, Valcombe leaves a second batch in the cellar two months beyond the six months required, without changing the quality of the product sold (case data). How should the cellar costs of these two extra months be analysed?","es":""},"explanation":{"fr":"","en":"Storage is included only if it is necessary in the production process before a further stage (IAS 2, para. 16). Beyond the technical duration, and with no effect on the product, keeping the cheese in the cellar responds to demand rather than to the process: a professional judgment, to be supported by the specifications.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"They are included, since the product is still in the cellar","es":""},"correct":false,"feedback":{"fr":"","en":"The place is not enough: what counts is whether storage is necessary to the production process.","es":""}},{"id":"B","text":{"fr":"","en":"They look more like storage awaiting sale and are rather expenses; the analysis must be documented","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"They are included in the cost of the first batch, already sold","es":""},"correct":false,"feedback":{"fr":"","en":"These costs do not relate to the first batch; attaching them to a sold batch has no basis.","es":""}}],"id":"P3","dimension":"PROFESSIONAL_JUDGMENT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000049","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.OTHER_AND_EXCLUDED"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"MACHINERY","tested_point":"CUSTOMER_SPECIFIC_DESIGN","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS2.000005","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000005","section_id":"other-costs"},"references":["IAS 2","IAS 2 §16"],"exercise":{"prompt":{"fr":"","en":"Case data: a packaging machinery manufacturer is building a series of ten machines to the specifications of a dairy customer. Its design office has carried out four types of design work during the year. Which one can be included in the cost of the machines in inventory?","es":""},"explanation":{"fr":"","en":"It may be appropriate to include in the cost of inventories the costs of designing products for specific customers (IAS 2, para. 15): only adapting the drawings for this customer helps bring the machines to the required condition. The other design work does not relate to this customer (future range, sales material, internal standards) and is excluded (IAS 2, para. 16).","es":""},"common_error":{"fr":"","en":"Including every design office cost on the grounds that it is \"design\", without checking that it relates to the customer and the series in inventory.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Adapting the drawings to this customer's specifications, for the series in progress","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Exploratory design of a future range intended for the market as a whole","es":""},"correct":false,"feedback":{"fr":"","en":"This is neither design for a specific customer nor a cost incurred to bring these machines to their present condition: this expenditure follows the rules on research and development (IAS 38).","es":""}},{"id":"C","text":{"fr":"","en":"Visual mock-ups produced for the range's sales brochure","es":""},"correct":false,"feedback":{"fr":"","en":"These are selling costs, always excluded from the cost of inventories (IAS 2, para. 16).","es":""}},{"id":"D","text":{"fr":"","en":"Updating the drawing standards shared by all of the company's projects","es":""},"correct":false,"feedback":{"fr":"","en":"This general and administrative cost does not contribute to bringing this series to its present location and condition (IAS 2, para. 16).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000050","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.OTHER_AND_EXCLUDED"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"BORROWING_COSTS_REFERRAL","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS2.000005","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000005","section_id":"borrowing-costs"},"references":["IAS 2"],"exercise":{"prompt":{"fr":"","en":"IAS 2 itself sets out, in detail, the conditions under which borrowing costs are included in the cost of inventories.","es":""},"explanation":{"fr":"","en":"False. IAS 2 refers to IAS 23, which identifies the limited circumstances in which borrowing costs are included in the cost of inventories (IAS 2, para. 17).","es":""},"common_error":{"fr":"","en":"Looking in IAS 2 for a rule that is in IAS 23, or concluding too quickly that interest is always excluded.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000051","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.MEASUREMENT_TECHNIQUES"],"dimension":"CALCULATION","format":"CALCULATION","context":"RETAIL","tested_point":"RETAIL_METHOD_BY_DEPARTMENT","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS2.000006","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000006","section_id":"retail-method"},"references":["IAS 2 §22"],"exercise":{"prompt":{"fr":"","en":"A department store measures its inventories using the retail method, with an appropriate gross margin percentage for each department (case data, markdowns taken into account). Calculate the cost of the inventories.","es":""},"explanation":{"fr":"","en":"Cost is obtained by deducting the appropriate gross margin percentage from the sales value, often calculated for each department (IAS 2, para. 22). Fashion: 180,000 × (1 − 45%) = 99,000; Sports: 120,000 × (1 − 30%) = 84,000; total 183,000.","es":""},"common_error":{"fr":"","en":"Multiplying the sales value by the margin percentage (180,000 × 45% = 81,000): this gives the margin, not the cost.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Fashion department — inventories at sales value after markdowns","es":""},"value":"180000","unit":"EUR"},{"label":{"fr":"","en":"Fashion department — appropriate gross margin","es":""},"value":"45","unit":"PERCENT"},{"label":{"fr":"","en":"Sports department — inventories at sales value after markdowns","es":""},"value":"120000","unit":"EUR"},{"label":{"fr":"","en":"Sports department — appropriate gross margin","es":""},"value":"30","unit":"PERCENT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Cost of the Fashion department","es":""},"answer":99000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Cost of the Sports department","es":""},"answer":84000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Total cost of inventories","es":""},"answer":183000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Cost of the Fashion department","es":""},"expression":"a * (1 - b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fashion department — inventories at sales value after markdowns","es":""},"value":180000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fashion department — appropriate gross margin","es":""},"value":45,"unit":"PERCENT"}],"result":99000,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Cost of the Sports department","es":""},"expression":"a * (1 - b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Sports department — inventories at sales value after markdowns","es":""},"value":120000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Sports department — appropriate gross margin","es":""},"value":30,"unit":"PERCENT"}],"result":84000,"unit":"EUR"}],"rationale":{"fr":"","en":"Cost is obtained by deducting the appropriate gross margin percentage from the sales value, often calculated for each department (IAS 2, para. 22).","es":""},"references":["REF.IAS2.22"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000052","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.MEASUREMENT_TECHNIQUES"],"dimension":"CALCULATION","format":"CALCULATION","context":"MANUFACTURING","tested_point":"STANDARD_COST_VARIANCE","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS2.000006","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000006","section_id":"standard-cost"},"references":["IAS 2 §21"],"exercise":{"prompt":{"fr":"","en":"A valve maker measures its inventories at standard cost: 25.00 per valve (materials 10.00; labour 8.00; production overheads 7.00). For six months, a new supplier price list has brought the actual cost of materials to 11.50 per valve; case assumption: the other components remain in line with the standard. Inventories comprise 8,000 valves. Calculate.","es":""},"explanation":{"fr":"","en":"At standard: 8,000 × 25.00 = 200,000. At actual cost: 8,000 × (11.50 + 8.00 + 7.00) = 8,000 × 26.50 = 212,000. Variance: 12,000, due to a lasting change in the price of materials. Standards are regularly reviewed and revised if necessary, and the technique is permitted only if its result approximates cost (IAS 2, para. 21): the materials standard must be revised. The standard sets no threshold: the conclusion rests on the lasting nature of the variance.","es":""},"common_error":{"fr":"","en":"Keeping the standard on the grounds that it was 'approved' when it was set, although conditions have changed for good.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Standard cost per valve","es":""},"value":"25.00","unit":"EUR"},{"label":{"fr":"","en":"Actual materials cost per valve","es":""},"value":"11.50","unit":"EUR"},{"label":{"fr":"","en":"Valves in inventories","es":""},"value":"8000","unit":"UNITS"}],"steps":[{"id":"S1","label":{"fr":"","en":"Inventories at standard cost","es":""},"answer":200000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Inventories at actual cost","es":""},"answer":212000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Variance between actual cost and standard","es":""},"answer":12000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Inventories at standard cost","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Valves in inventories","es":""},"value":8000,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Standard cost per valve","es":""},"value":25,"unit":"EUR"}],"result":200000,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Inventories at actual cost","es":""},"expression":"a * (b + 8 + 7)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Valves in inventories","es":""},"value":8000,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Actual materials cost per valve","es":""},"value":11.5,"unit":"EUR"}],"result":212000,"unit":"EUR"}],"rationale":{"fr":"","en":"Standards are regularly reviewed and revised if necessary, and the technique is permitted only if its result approximates cost (IAS 2, para. 21): the materials standard must be revised.","es":""},"references":["REF.IAS2.21"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000053","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.MEASUREMENT_TECHNIQUES"],"dimension":"CALCULATION","format":"CALCULATION","context":"RETAIL","tested_point":"RETAIL_METHOD_MARKDOWNS","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS2.000006","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000006","section_id":"retail-method"},"references":["IAS 2 §22"],"exercise":{"prompt":{"fr":"","en":"A shoe shop applies the retail method. At the count, its inventories are worth 150,000 at original selling prices; part of them has been marked down by 20,000 in total. The appropriate gross margin percentage, which takes markdowns into account, is 38% (case data). Calculate.","es":""},"explanation":{"fr":"","en":"The method starts from the sales value of the inventories and deducts the appropriate gross margin percentage, which takes marked-down items into account (IAS 2, para. 22). Value after markdowns: 150,000 − 20,000 = 130,000; cost: 130,000 × (1 − 38%) = 80,600. Starting from original prices would give 150,000 × 62% = 93,000, i.e. 12,400 too much. The detailed calculation of the percentage is not described by the standard: it is given here as case data.","es":""},"common_error":{"fr":"","en":"Applying the percentage to catalogue prices as if markdowns did not exist: inventories are then overstated.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Inventories at original selling prices","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"Markdowns on inventories","es":""},"value":"20000","unit":"EUR"},{"label":{"fr":"","en":"Appropriate gross margin","es":""},"value":"38","unit":"PERCENT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Sales value of inventories after markdowns","es":""},"answer":130000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Estimated cost of inventories","es":""},"answer":80600,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Overstatement if original prices were used","es":""},"answer":12400,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Sales value of inventories after markdowns","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Inventories at original selling prices","es":""},"value":150000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Markdowns on inventories","es":""},"value":20000,"unit":"EUR"}],"result":130000,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Estimated cost of inventories","es":""},"expression":"a * (1 - b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Sales value of inventories after markdowns","es":""},"value":130000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Appropriate gross margin","es":""},"value":38,"unit":"PERCENT"}],"result":80600,"unit":"EUR"}],"rationale":{"fr":"","en":"The method starts from the sales value of the inventories and deducts the appropriate gross margin percentage, which takes marked-down items into account (IAS 2, para. 22).","es":""},"references":["REF.IAS2.22"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000054","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.MEASUREMENT_TECHNIQUES"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"SUPERMARKET","tested_point":"RETAIL_METHOD_CONDITIONS","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS2.000006","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000006","section_id":"pitfalls"},"references":["IAS 2 §9","IAS 2 §21","IAS 2 §22"],"exercise":{"prompt":{"fr":"","en":"A hypermarket describes its inventory measurement method in its year-end file. Spot the erroneous statements.","es":""},"explanation":{"fr":"","en":"The retail method is a convenience technique permitted if its result approximates cost (IAS 2, para. 21); it relies on an appropriate gross margin percentage, taking markdowns into account, often for each department (IAS 2, para. 22). The cost obtained remains subject to the lower of cost and net realisable value (IAS 2, para. 9).","es":""},"common_error":{"fr":"","en":"Believing that a method 'provided for by the standard' is acceptable whatever its result.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"We apply the store's average margin, 35%, to all departments, from grocery (margin of about 20%) to perfumery (margin of about 50%).","es":""},"erroneous":true,"correction":{"fr":"","en":"The method assumes items with similar margins; an average percentage for each department is often used (IAS 2, para. 22). Departments with such different margins cannot share a single margin.","es":""}},{"id":"S2","text":{"fr":"","en":"The margin percentages used take into account items marked down below their original price.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"As the retail method is provided for by IAS 2, we do not need to check that its result approximates cost.","es":""},"erroneous":true,"correction":{"fr":"","en":"The method is permitted only if its result approximates cost (IAS 2, para. 21): the entity must be able to demonstrate this.","es":""}},{"id":"S4","text":{"fr":"","en":"The cost obtained using the retail method is then compared with the net realisable value of the items.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000055","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.MEASUREMENT_TECHNIQUES"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"PHARMA","tested_point":"STANDARD_COST_REVIEW","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS2.000006","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000006","section_id":"standard-cost"},"references":["IAS 2 §21"],"exercise":{"prompt":{"fr":"","en":"Case data: a pharmaceutical laboratory measures its tablet inventories at standard cost. The standard, set three years ago, assumes a 98% materials yield. For two years, new quality-control requirements have lastingly reduced the yield to 92%, a level that management now regards as normal. Adverse variances are expensed each year. What do you conclude?","es":""},"explanation":{"fr":"","en":"Standard cost may only be used if its result approximates cost. It is based on normal levels of materials, labour, efficiency and capacity utilisation, and it is regularly reviewed and revised if necessary (IAS 2, para. 21). A 98% yield that has become unrealistic must therefore be revised. The \"normal\" level of 92% is case data, based on management's judgement.","es":""},"common_error":{"fr":"","en":"Believing that a standard, once set, remains valid as long as the variances are expensed.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The standard can be kept, since the variances are already expensed each year","es":""},"correct":false,"feedback":{"fr":"","en":"Expensing the variances does not correct the measurement of inventories: the standard no longer reflects a normal level of consumption.","es":""}},{"id":"B","text":{"fr":"","en":"The standard must be reviewed and revised to reflect the current normal yield, so that its result remains close to cost","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The standard must be raised to an ideal yield of 100%, which is more demanding","es":""},"correct":false,"feedback":{"fr":"","en":"An ideal yield is not a normal level: it would move the standard even further away from cost.","es":""}},{"id":"D","text":{"fr":"","en":"The laboratory must abandon standard cost in favour of selling price less a margin","es":""},"correct":false,"feedback":{"fr":"","en":"The retail method is mainly used in retailing; here, revising the standard is enough for it to remain close to cost.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000056","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.MEASUREMENT_TECHNIQUES"],"dimension":"RECOGNITION","format":"TRUE_FALSE","context":"AUTOMOTIVE","tested_point":"RETAIL_METHOD_SUITABILITY","difficulty":"INTERMEDIATE","estimated_time_s":45,"lesson_id":"LS.IAS2.000006","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000006","section_id":"retail-method"},"references":["IAS 2 §22"],"exercise":{"prompt":{"fr":"","en":"A dealer holding about twenty collector cars, each bought at a negotiated price and resold with margins that vary widely from one vehicle to another, is in the typical situation for using the retail method.","es":""},"explanation":{"fr":"","en":"False. The retail method is used in retail for large numbers of rapidly changing items with similar margins (IAS 2, para. 22). A few high-value vehicles with heterogeneous margins do not fit that profile: their actual cost is, moreover, easy to track.","es":""},"common_error":{"fr":"","en":"Thinking that the retail method suits any trader, whatever the nature of its inventories.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000057","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.MEASUREMENT_TECHNIQUES"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"DIY_RETAIL","tested_point":"STORE_AVERAGE_MARGIN_ERROR","difficulty":"ADVANCED","estimated_time_s":420,"lesson_id":"LS.IAS2.000006","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000006","section_id":"judgment"},"references":["IAS 2 §9","IAS 2 §21","IAS 2 §22"],"exercise":{"prompt":{"fr":"","en":"Analyse Bricoval's inventory measurement method at the reporting date.","es":""},"explanation":{"fr":"","en":"The technique is a shortcut to cost: its parameter (the margin percentage) must reflect the actual mix of inventories, hence the department-by-department calculation (IAS 2, paras. 21 and 22).","es":""},"common_error":{"fr":"","en":"Using a single store margin for simplicity, without checking the effect of the inventory mix.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Bricoval (a fictitious entity) runs a DIY and garden store. It measures its inventories using the retail method, applying the store's average gross margin, 35% (case data), to all inventories. Its auditor has doubts: the Garden department earns much higher margins than the Tools department.","es":""},"exhibits":[{"title":{"fr":"","en":"Inventories at the reporting date (case data)","es":""},"body":{"fr":"","en":"Tools department: 200,000 at sales value after markdowns, appropriate gross margin 30%. Garden department: 100,000 at sales value after markdowns, appropriate gross margin 55%. The percentages for each department take markdowns into account.","es":""}}],"parts":[{"prompt":{"fr":"","en":"Calculate the cost of inventories department by department.","es":""},"explanation":{"fr":"","en":"Tools: 200,000 × (1 − 30%) = 140,000; Garden: 100,000 × (1 − 55%) = 45,000; total 185,000 (IAS 2, para. 22).","es":""},"common_error":{"fr":"","en":"Applying one margin to all departments: the retail method uses each department's appropriate gross margin percentage.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"S1","label":{"fr":"","en":"Cost of the Tools department","es":""},"answer":140000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Cost of the Garden department","es":""},"answer":45000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Total cost","es":""},"answer":185000,"tolerance":0,"unit":"EUR"}],"id":"P1","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Cost of the Tools department","es":""},"expression":"a * (1 - b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"200,000 at sales value after markdowns","es":""},"value":200000},{"symbol":"b","meaning":{"fr":"","en":"appropriate gross margin 30%","es":""},"value":30,"unit":"PERCENT"}],"result":140000,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Cost of the Garden department","es":""},"expression":"a * (1 - b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"100,000 at sales value after markdowns","es":""},"value":100000},{"symbol":"b","meaning":{"fr":"","en":"appropriate gross margin 55%","es":""},"value":55,"unit":"PERCENT"}],"result":45000,"unit":"EUR"}],"references":["REF.IAS2.22"]}},{"prompt":{"fr":"","en":"Calculate the cost obtained with the store's average margin and the difference.","es":""},"explanation":{"fr":"","en":"300,000 × (1 − 35%) = 195,000, i.e. 10,000 more than the cost calculated department by department (185,000).","es":""},"common_error":{"fr":"","en":"Believing the store's average margin gives the same result: here it overstates inventory by 10,000 compared with the department-by-department calculation.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"S1","label":{"fr":"","en":"Cost with the 35% average margin","es":""},"answer":195000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Overstatement of inventories","es":""},"answer":10000,"tolerance":0,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION"},{"prompt":{"fr":"","en":"What conclusion should be drawn?","es":""},"explanation":{"fr":"","en":"The retail method suits items with similar margins, and an average percentage for each department is often used (IAS 2, para. 22); it is permitted only if its result approximates cost (IAS 2, para. 21). A single margin over departments with margins of 30% and 55% overstates inventories here by 10,000.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The store's average margin is acceptable, because the retail method is provided for by IAS 2","es":""},"correct":false,"feedback":{"fr":"","en":"The method is permitted only if its result approximates cost; here, the inventory mix distorts the average.","es":""}},{"id":"B","text":{"fr":"","en":"Bricoval should apply an appropriate percentage for each department and document this grouping","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Bricoval should abandon any technique and measure its inventories at selling price","es":""},"correct":false,"feedback":{"fr":"","en":"Bricoval cannot measure its inventories at selling price: they are measured at the lower of cost and net realisable value (IAS 2, para. 9); the retail method is precisely a way of arriving at that cost.","es":""}}],"id":"P3","dimension":"PROFESSIONAL_JUDGMENT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000058","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.MEASUREMENT_TECHNIQUES"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"MEASUREMENT_TECHNIQUES_RULES","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS2.000006","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000006","section_id":"techniques-rule"},"references":["IAS 2 §21","IAS 2 §22"],"exercise":{"prompt":{"fr":"","en":"Which statements about techniques for measuring cost are correct?","es":""},"explanation":{"fr":"","en":"Standard cost and the retail method are permitted for convenience if their results approximate cost; standards are based on normal levels and reviewed regularly (IAS 2, para. 21). The retail method deducts the appropriate gross margin percentage from sales value, often for each department (IAS 2, para. 22).","es":""},"common_error":{"fr":"","en":"Seeing these techniques as measurement bases that are alternatives to cost.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"They may be used for convenience if their results approximate cost.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Standard costs are regularly reviewed and, if necessary, revised.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Under the retail method, an average percentage for each department is often used.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A standard cost may be based on the maximum theoretical capacity of the facilities.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard is based on normal levels, including capacity utilisation.","es":""}},{"id":"E","text":{"fr":"","en":"The retail method allows inventories to be recognised at their selling price.","es":""},"correct":false,"feedback":{"fr":"","en":"It starts from the selling price to arrive at a cost: the appropriate gross margin is deducted.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000059","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST_FORMULAS.FIFO_WEIGHTED_AVERAGE"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"WEIGHTED_AVERAGE_VARIANTS","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IAS2.000007","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000007","section_id":"fifo-and-average"},"references":["IAS 2 §27"],"exercise":{"prompt":{"fr":"","en":"Under IAS 2, weighted average cost may be calculated either over the whole period or on each new receipt into inventory, depending on the entity's circumstances.","es":""},"explanation":{"fr":"","en":"True. The weighted average of opening inventory and receipts may be calculated periodically or as each new receipt arrives, depending on the entity's circumstances (IAS 2, para. 27). In both cases it is the same weighted average cost formula.","es":""},"common_error":{"fr":"","en":"Believing that only the periodic average is allowed, or that the average recalculated after each receipt is a separate third formula.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000060","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST_FORMULAS.SPECIFIC_IDENTIFICATION"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"SHIPBUILDING","tested_point":"SPECIFIC_IDENTIFICATION_REQUIRED","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IAS2.000007","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000007","section_id":"specific-identification"},"references":["IAS 2 §23","IAS 2 §24"],"exercise":{"prompt":{"fr":"","en":"Case data: a shipyard is building three sailing yachts, each to the plans and options chosen by a different customer. The costs of each hull are tracked separately and the yachts remain in inventory until delivery. How does it determine the cost of the yacht delivered?","es":""},"explanation":{"fr":"","en":"Goods produced for specific projects that are not interchangeable are measured by specific identification of their individual costs (IAS 2, para. 23); the method attributes specific costs to identified items (IAS 2, para. 24).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"At the weighted average cost of the three yachts","es":""},"correct":false,"feedback":{"fr":"","en":"The yachts are not interchangeable: an average would mix costs specific to each order.","es":""}},{"id":"B","text":{"fr":"","en":"Using FIFO, issuing first the hull started first","es":""},"correct":false,"feedback":{"fr":"","en":"FIFO is for interchangeable items; here each yacht is unique.","es":""}},{"id":"C","text":{"fr":"","en":"By specific identification: the yacht's own cost","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"At the entity's choice among the three methods","es":""},"correct":false,"feedback":{"fr":"","en":"There is no choice: for items that are not interchangeable, specific identification is required.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000061","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST_FORMULAS.SPECIFIC_IDENTIFICATION","IAS2.COST_FORMULAS.FIFO_WEIGHTED_AVERAGE"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"FORMULA_BY_INVENTORY_TYPE","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS2.000007","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000007","section_id":"specific-identification"},"references":["IAS 2 §23","IAS 2 §24","IAS 2 §25"],"exercise":{"prompt":{"fr":"","en":"Classify each inventory according to how IAS 2 requires its cost to be determined.","es":""},"explanation":{"fr":"","en":"Items that are not interchangeable (custom presses, original works) and goods segregated for a specific project (beams marked for a site) fall under specific identification (IAS 2, paras. 23 and 24). Interchangeable items (screws, diesel) are measured using FIFO or weighted average cost (IAS 2, para. 25).","es":""},"common_error":{"fr":"","en":"Applying FIFO or weighted average to non-interchangeable items such as custom presses or paintings: their cost follows specific identification.","es":""},"format":"CLASSIFICATION","categories":[{"id":"SPECIFIC","text":{"fr":"","en":"Specific identification","es":""}},{"id":"FORMULA","text":{"fr":"","en":"FIFO or weighted average cost","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Hydraulic presses built to a customer's specifications","es":""},"category":"SPECIFIC"},{"id":"I2","text":{"fr":"","en":"Boxes of standard screws bought by the thousand","es":""},"category":"FORMULA"},{"id":"I3","text":{"fr":"","en":"Original paintings held by a gallery for sale","es":""},"category":"SPECIFIC"},{"id":"I4","text":{"fr":"","en":"Diesel stored in a fuel distributor's tanks","es":""},"category":"FORMULA"},{"id":"I5","text":{"fr":"","en":"Beams cut and marked for a given customer's site","es":""},"category":"SPECIFIC"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000062","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST_FORMULAS.FIFO_WEIGHTED_AVERAGE"],"dimension":"CALCULATION","format":"CALCULATION","context":"RETAIL","tested_point":"FIFO_CALCULATION","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IAS2.000007","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000007","section_id":"numeric-example"},"references":["IAS 2 §25","IAS 2 §27"],"exercise":{"prompt":{"fr":"","en":"A sporting goods store applies FIFO to its bicycle helmets. Calculate the cost of the two sales and closing inventory at 31 May.","es":""},"explanation":{"fr":"","en":"FIFO is one of the two formulas permitted for interchangeable items (IAS 2, para. 25); the helmets received first are issued first (IAS 2, para. 27). Sale of 20 April: 400 × 30 + 300 × 33 = 21,900. Sale of 28 May: the remaining 300 helmets at 33 + 150 × 36 = 15,300. Closing inventory: 350 helmets from the last purchase × 36 = 12,600. Check: 21,900 + 15,300 + 12,600 = 49,800 = 12,000 + 19,800 + 18,000.","es":""},"common_error":{"fr":"","en":"Measuring the sale of 28 May at the last purchase price (36) although 300 helmets from the batch at 33 were still in stock: that is LIFO reasoning.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Inventory at 1 April: 400 helmets at 30","es":""},"value":"12000","unit":"EUR"},{"label":{"fr":"","en":"Purchase of 10 April: 600 helmets at 33","es":""},"value":"19800","unit":"EUR"},{"label":{"fr":"","en":"Sale of 20 April","es":""},"value":"700","unit":"UNITS"},{"label":{"fr":"","en":"Purchase of 5 May: 500 helmets at 36","es":""},"value":"18000","unit":"EUR"},{"label":{"fr":"","en":"Sale of 28 May","es":""},"value":"450","unit":"UNITS"}],"steps":[{"id":"S1","label":{"fr":"","en":"Cost of the sale of 20 April","es":""},"answer":21900,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Cost of the sale of 28 May","es":""},"answer":15300,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Closing inventory at 31 May","es":""},"answer":12600,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000063","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST_FORMULAS.FIFO_WEIGHTED_AVERAGE"],"dimension":"CALCULATION","format":"CALCULATION","context":"ELECTRONICS","tested_point":"PERIODIC_WEIGHTED_AVERAGE_CALCULATION","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS2.000007","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000007","section_id":"numeric-example"},"references":["IAS 2 §25","IAS 2 §27"],"exercise":{"prompt":{"fr":"","en":"An electronic components distributor measures its motherboards at weighted average cost calculated over the quarter. Calculate the average cost, cost of sales and closing inventory.","es":""},"explanation":{"fr":"","en":"Weighted average cost is one of the two formulas permitted for interchangeable items (IAS 2, para. 25). The average covers opening inventory and the period's receipts (IAS 2, para. 27): (30,000 + 48,000 + 85,500) ÷ (200 + 300 + 500) = 163,500 ÷ 1,000 = 163.50. Cost of sales: 750 × 163.50 = 122,625. Closing inventory: 250 × 163.50 = 40,875. Check: 122,625 + 40,875 = 163,500.","es":""},"common_error":{"fr":"","en":"Calculating the average on purchases only (133,500 ÷ 800 = 166.875), leaving out opening inventory.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Opening inventory: 200 boards at 150","es":""},"value":"30000","unit":"EUR"},{"label":{"fr":"","en":"Purchase 1: 300 boards at 160","es":""},"value":"48000","unit":"EUR"},{"label":{"fr":"","en":"Purchase 2: 500 boards at 171","es":""},"value":"85500","unit":"EUR"},{"label":{"fr":"","en":"Boards sold during the quarter","es":""},"value":"750","unit":"UNITS"}],"steps":[{"id":"S1","label":{"fr":"","en":"Weighted average unit cost for the quarter","es":""},"answer":163.5,"tolerance":0.005,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Cost of sales","es":""},"answer":122625,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Closing inventory","es":""},"answer":40875,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Cost of sales","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Boards sold during the quarter","es":""},"value":750,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Weighted average unit cost for the quarter","es":""},"value":163.5,"unit":"EUR"}],"result":122625,"unit":"EUR"}],"rationale":{"fr":"","en":"Weighted average cost is one of the two formulas permitted for interchangeable items (IAS 2, para. 25).","es":""},"references":["REF.IAS2.25","REF.IAS2.27"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000064","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST_FORMULAS.FIFO_WEIGHTED_AVERAGE"],"dimension":"CALCULATION","format":"CALCULATION","context":"PHARMA","tested_point":"MOVING_WEIGHTED_AVERAGE_CALCULATION","difficulty":"ADVANCED","estimated_time_s":240,"lesson_id":"LS.IAS2.000007","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000007","section_id":"numeric-example"},"references":["IAS 2 §27"],"exercise":{"prompt":{"fr":"","en":"A pharmaceutical wholesaler keeps its boxes of dressings on a perpetual system, at weighted average cost recalculated after each receipt. Calculate the amounts requested for January.","es":""},"explanation":{"fr":"","en":"The average is recalculated on each receipt (IAS 2, para. 27). After 5 January: 17,000 ÷ 2,000 = 8.50; issue of 12 January: 1,200 × 8.50 = 10,200; 800 boxes remain for 6,800. After 20 January: (6,800 + 12,300) ÷ 2,000 = 9.55; issue of 28 January: 1,500 × 9.55 = 14,325. Issues: 10,200 + 14,325 = 24,525. Closing inventory: 500 × 9.55 = 4,775. Check: 24,525 + 4,775 = 29,300 = 8,000 + 9,000 + 12,300.","es":""},"common_error":{"fr":"","en":"Recalculating the 20 January average from the original quantities and amounts (29,300 ÷ 3,200), without removing the issue of 12 January.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"1 Jan — opening inventory: 1,000 boxes at 8.00","es":""},"value":"8000","unit":"EUR"},{"label":{"fr":"","en":"5 Jan — purchase: 1,000 boxes at 9.00","es":""},"value":"9000","unit":"EUR"},{"label":{"fr":"","en":"12 Jan — issue (boxes)","es":""},"value":"1200","unit":"UNITS"},{"label":{"fr":"","en":"20 Jan — purchase: 1,200 boxes at 10.25","es":""},"value":"12300","unit":"EUR"},{"label":{"fr":"","en":"28 Jan — issue (boxes)","es":""},"value":"1500","unit":"UNITS"}],"steps":[{"id":"S1","label":{"fr":"","en":"Average cost after the purchase of 5 January","es":""},"answer":8.5,"tolerance":0.005,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Average cost after the purchase of 20 January","es":""},"answer":9.55,"tolerance":0.005,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Cost of the month's issues","es":""},"answer":24525,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Closing inventory at 31 January","es":""},"answer":4775,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S3","meaning":{"fr":"","en":"Cost of the month's issues","es":""},"expression":"(a * b) + (c * d)","variables":[{"symbol":"a","meaning":{"fr":"","en":"12 Jan — issue (boxes)","es":""},"value":1200,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Average cost after the purchase of 5 January","es":""},"value":8.5,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"28 Jan — issue (boxes)","es":""},"value":1500,"unit":"UNITS"},{"symbol":"d","meaning":{"fr":"","en":"Average cost after the purchase of 20 January","es":""},"value":9.55,"unit":"EUR"}],"result":24525,"unit":"EUR"}],"rationale":{"fr":"","en":"The average is recalculated on each receipt (IAS 2, para. 27).","es":""},"references":["REF.IAS2.27"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000065","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST_FORMULAS.FIFO_WEIGHTED_AVERAGE"],"dimension":"ANALYSIS","format":"CALCULATION","context":"AUTOMOTIVE","tested_point":"FIFO_VERSUS_AVERAGE_FALLING_PRICES","difficulty":"ADVANCED","estimated_time_s":210,"lesson_id":"LS.IAS2.000007","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000007","section_id":"numeric-example"},"references":["IAS 2 §25","IAS 2 §27"],"exercise":{"prompt":{"fr":"","en":"A car service centre sees the purchase price of a tyre model fall during the year. Compare FIFO with the periodic weighted average cost.","es":""},"explanation":{"fr":"","en":"FIFO (IAS 2, para. 27): issues 100 × 80 + 300 × 70 + 50 × 65 = 32,250; closing inventory 150 × 65 = 9,750. Average cost: 42,000 ÷ 600 = 70; cost of sales 450 × 70 = 31,500; closing inventory 10,500. When prices are falling, FIFO issues the older, higher costs: cost of sales is 750 higher and closing inventory 750 lower. Both formulas are allowed (IAS 2, para. 25); the total allocated remains 42,000.","es":""},"common_error":{"fr":"","en":"Issuing the most recent tyres first under FIFO: the oldest are issued first, closing inventory being the recent purchases.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Opening inventory: 100 tyres at 80","es":""},"value":"8000","unit":"EUR"},{"label":{"fr":"","en":"Spring purchase: 300 tyres at 70","es":""},"value":"21000","unit":"EUR"},{"label":{"fr":"","en":"Autumn purchase: 200 tyres at 65","es":""},"value":"13000","unit":"EUR"},{"label":{"fr":"","en":"Tyres sold during the year","es":""},"value":"450","unit":"UNITS"}],"steps":[{"id":"S1","label":{"fr":"","en":"Cost of sales under FIFO","es":""},"answer":32250,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Closing inventory under FIFO","es":""},"answer":9750,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Cost of sales at periodic weighted average cost","es":""},"answer":31500,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Difference in cost of sales (FIFO − average cost)","es":""},"answer":750,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000066","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST_FORMULAS.FIFO_WEIGHTED_AVERAGE"],"dimension":"ANALYSIS","format":"CALCULATION","context":"GENERIC","tested_point":"FORMULA_EFFECT_ON_MARGIN","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS2.000007","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000007","section_id":"why"},"references":["IAS 2 §25","IAS 2 §27"],"exercise":{"prompt":{"fr":"","en":"To inform its choice of cost formula, an olive oil wholesaler selling in cans compares FIFO with weighted average cost for year N. Calculate the gross margin obtained with each formula and the difference.","es":""},"explanation":{"fr":"","en":"FIFO (IAS 2, para. 27): cost of sales 2,000 × 5 + 2,000 × 6 = 22,000; margin 36,000 − 22,000 = 14,000; closing inventory 1,000 × 6 = 6,000. Average cost: 28,000 ÷ 5,000 = 5.60; cost of sales 4,000 × 5.60 = 22,400; margin 13,600; closing inventory 5,600. The difference in margin (400) is exactly the difference in closing inventory: the formula shifts profit between periods; it neither creates nor destroys cost. The choice between these two allowed formulas (IAS 2, para. 25) is then applied consistently.","es":""},"common_error":{"fr":"","en":"Believing a formula creates or destroys cost: the margin difference equals the closing inventory difference; it only shifts profit between periods.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Opening inventory: 2,000 cans at 5","es":""},"value":"10000","unit":"EUR"},{"label":{"fr":"","en":"Purchase: 3,000 cans at 6","es":""},"value":"18000","unit":"EUR"},{"label":{"fr":"","en":"Sales after the purchase: 4,000 cans at 9 (revenue)","es":""},"value":"36000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Gross margin under FIFO","es":""},"answer":14000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Gross margin at weighted average cost","es":""},"answer":13600,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Difference in margin (equal to the difference in closing inventory)","es":""},"answer":400,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000067","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST_FORMULAS.FIFO_WEIGHTED_AVERAGE"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"ELECTRONICS","tested_point":"COST_OF_SALES_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS2.000007","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000007","section_id":"entry"},"references":["IAS 2 §27","IAS 2 §34"],"exercise":{"prompt":{"fr":"","en":"Case data: a components distributor has delivered and invoiced 750 motherboards on credit for 180,000 (sale completed, case data). At the periodic weighted average cost of 163.50, the cost of the boards sold is 122,625. Record the sale and the inventory issue (summary entry at the end of the quarter).","es":""},"explanation":{"fr":"","en":"The sale is given (pre-filled lines). The carrying amount of inventories sold is recognised as an expense in the period in which the related revenue is recognised (IAS 2, para. 34): debit cost of sales, credit inventory for 750 × 163.50 = 122,625, the amount produced by the weighted average cost formula (IAS 2, para. 27). The write-down allowance is not used: no write-down is involved.","es":""},"common_error":{"fr":"","en":"Forgetting the inventory release entry or posting it at selling price: cost of sales is debited with the carrying amount of the goods sold.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"TRADE_RECEIVABLES","text":{"fr":"","en":"Trade receivables","es":""}},{"id":"REVENUE","text":{"fr":"","en":"Revenue from sale of goods","es":""}},{"id":"COST_OF_SALES","text":{"fr":"","en":"Cost of sales","es":""}},{"id":"MERCHANDISE_INVENTORY","text":{"fr":"","en":"Merchandise inventory","es":""}},{"id":"PURCHASES","text":{"fr":"","en":"Purchases of goods","es":""}},{"id":"INVENTORY_WRITE_DOWN_ALLOWANCE","text":{"fr":"","en":"Inventory write-down allowance (contra account)","es":""}}],"lines":[{"id":"L1","account":"TRADE_RECEIVABLES","side":"DEBIT","amount":180000,"given":["account","side","amount"]},{"id":"L2","account":"REVENUE","side":"CREDIT","amount":180000,"given":["account","side","amount"]},{"id":"L3","account":"COST_OF_SALES","side":"DEBIT","amount":122625},{"id":"L4","account":"MERCHANDISE_INVENTORY","side":"CREDIT","amount":122625}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000068","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST_FORMULAS.SPECIFIC_IDENTIFICATION","IAS2.COST_FORMULAS.FIFO_WEIGHTED_AVERAGE"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"MANUFACTURING","tested_point":"SPECIFIC_IDENTIFICATION_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS2.000007","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000007","section_id":"specific-identification"},"references":["IAS 2 §23","IAS 2 §24","IAS 2 §34"],"exercise":{"prompt":{"fr":"","en":"Case data: a machine-tool maker has built three special presses, each for a named customer. Costs tracked by press: A 126,000, B 143,500, C 118,000. The presses remain in inventory until delivery (case data). Press B is delivered to its customer. Record the inventory issue.","es":""},"explanation":{"fr":"","en":"The presses, built for named customers, are not interchangeable: their cost is determined by specific identification (IAS 2, paras. 23 and 24). Delivering B takes its own cost, 143,500, to cost of sales (IAS 2, para. 34). An average of the three presses (387,500 ÷ 3 ≈ 129,167) would be wrong. The completed presses are finished goods, not work in progress or property, plant and equipment.","es":""},"common_error":{"fr":"","en":"Issuing the average cost of the three presses, as if they were interchangeable items.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"COST_OF_SALES","text":{"fr":"","en":"Cost of sales","es":""}},{"id":"FINISHED_GOODS","text":{"fr":"","en":"Finished goods inventory","es":""}},{"id":"WORK_IN_PROGRESS","text":{"fr":"","en":"Work in progress","es":""}},{"id":"PPE","text":{"fr":"","en":"Property, plant and equipment","es":""}}],"lines":[{"id":"L1","account":"COST_OF_SALES","side":"DEBIT","amount":143500},{"id":"L2","account":"FINISHED_GOODS","side":"CREDIT","amount":143500,"given":["side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000069","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST_FORMULAS.FIFO_WEIGHTED_AVERAGE"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"ENERGY","tested_point":"LIFO_NOT_ALLOWED","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS2.000007","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000007","section_id":"fifo-and-average"},"references":["IAS 2 §25","IAS 2","IAS 2 §27"],"exercise":{"prompt":{"fr":"","en":"Here is the policy note of a heating oil distributor. Spot the erroneous statements.","es":""},"explanation":{"fr":"","en":"The formulas allowed for interchangeable items are FIFO and weighted average cost, calculated over the period or on each receipt (IAS 2, paras. 25 and 27). LIFO is excluded because it is not on that list, and tax rules or location do not justify another formula (IAS 2, para. 26).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"Heating oil stored in tanks is an interchangeable item: its cost is determined using a formula, not by specific identification.","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"We use LIFO, because it matches the most recent purchase costs against sales.","es":""},"erroneous":true,"correction":{"fr":"","en":"For interchangeable items, IAS 2 provides only for FIFO and weighted average cost (IAS 2, para. 25); LIFO is not one of them and cannot be used.","es":""}},{"id":"S3","text":{"fr":"","en":"Weighted average cost may be recalculated after each delivery of oil received.","es":""},"erroneous":false},{"id":"S4","text":{"fr":"","en":"The depot across the border applies a different formula to the same oil, because local tax rules are more favourable there.","es":""},"erroneous":true,"correction":{"fr":"","en":"A difference in geographical location or tax rules does not justify different formulas (IAS 2, para. 26): the same oil, with the same use, follows the same formula (IAS 2, para. 25).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000070","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST_FORMULAS.SPECIFIC_IDENTIFICATION","IAS2.COST_FORMULAS.FIFO_WEIGHTED_AVERAGE"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"METALS","tested_point":"SPECIFIC_IDENTIFICATION_MISUSED","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS2.000007","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000007","section_id":"specific-identification"},"references":["IAS 2 §23","IAS 2 §24","IAS 2 §25"],"exercise":{"prompt":{"fr":"","en":"A steel products trader holds identical steel bars, bought in batches at varying prices. Spot the erroneous statements of its management controller.","es":""},"explanation":{"fr":"","en":"Goods segregated for a specific project → specific identification (IAS 2, para. 23); interchangeable items → FIFO or weighted average cost (IAS 2, para. 25). Applying specific identification to interchangeable items would open the door to steering profit (IAS 2, para. 24).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"At year-end, we designate as sold the bars from the batches bought at the highest prices, in order to reduce taxable profit.","es":""},"erroneous":true,"correction":{"fr":"","en":"Choosing which batches are issued among interchangeable items would allow profit to be steered: specific identification is inappropriate in this case (IAS 2, para. 24), and cost follows FIFO or weighted average cost (IAS 2, para. 25).","es":""}},{"id":"S2","text":{"fr":"","en":"As the standard bars are interchangeable, their cost is determined using FIFO or weighted average cost.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"As specific identification is the most accurate method, it may be applied to all our inventories as long as our batches are labelled.","es":""},"erroneous":true,"correction":{"fr":"","en":"Specific identification is reserved for items that are not interchangeable and for goods segregated for specific projects (IAS 2, para. 23); labelling does not make identical bars non-interchangeable (IAS 2, para. 24).","es":""}},{"id":"S4","text":{"fr":"","en":"Bars cut to size and reserved for a given customer's site are tracked at their own cost.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000071","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST_FORMULAS.FIFO_WEIGHTED_AVERAGE"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"METALS","tested_point":"DIFFERENT_USE_BY_SEGMENT","difficulty":"EXPERT","estimated_time_s":300,"lesson_id":"LS.IAS2.000007","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000007","section_id":"consistency"},"references":["IAS 2 §25","IAS 2","IAS 2 §27"],"exercise":{"prompt":{"fr":"","en":"Analyse the group's policies and answer the questions.","es":""},"explanation":{"fr":"","en":"The formula follows the nature and use of the inventories: a different use in another operating segment may justify another formula, location or tax rules alone never do (IAS 2, paras. 25 and 26). Choosing a different formula still has to be documented.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Case data: an industrial group (a fictitious entity) holds aluminium ingots of the same grade in two operating segments. In the 'Foundry' segment, the ingots are melted down to make parts; the group measures them at weighted average cost. In the 'Trading' segment, identical ingots are bought to be resold as they are; the group is considering FIFO. The 'Trading' segment has one warehouse in France and another in Spain.","es":""},"exhibits":[{"title":{"fr":"","en":"Movements of the 'Trading' segment (N)","es":""},"body":{"fr":"","en":"Opening inventory: 50 t at 2,000 / t. Purchase: 100 t at 2,300 / t. Sales for the year: 90 t.","es":""}}],"parts":[{"prompt":{"fr":"","en":"May the group apply FIFO to the 'Trading' ingots while keeping weighted average cost for the 'Foundry' ingots?","es":""},"explanation":{"fr":"","en":"Inventories of the same type may have a different use in different operating segments, which may justify different formulas (IAS 2, paras. 25 and 26): material melted down on one side, goods resold on the other.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No, identical ingots must always follow the same formula","es":""},"correct":false,"feedback":{"fr":"","en":"The standard looks at nature and use: the same item may have different uses depending on the segment.","es":""}},{"id":"B","text":{"fr":"","en":"Yes, the different use in each operating segment may justify different formulas","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Yes, because each segment chooses its formula freely, with no condition","es":""},"correct":false,"feedback":{"fr":"","en":"The choice is not free: it is the difference in use that may justify it.","es":""}}],"id":"P1","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"Within 'Trading', the Spanish warehouse may apply weighted average cost and the French warehouse FIFO, since they are in two countries.","es":""},"explanation":{"fr":"","en":"False. A mere difference in geographical location does not justify different formulas (IAS 2, para. 26); the 'Trading' ingots have the same nature and use.","es":""},"common_error":{"fr":"","en":"Justifying two formulas by two countries: for ingots of the same nature and use, location is not enough.","es":""},"format":"TRUE_FALSE","answer":false,"id":"P2","dimension":"RULE_KNOWLEDGE"},{"prompt":{"fr":"","en":"Using FIFO, calculate the cost of sales and closing inventory of 'Trading'.","es":""},"explanation":{"fr":"","en":"FIFO (IAS 2, para. 27): 50 × 2,000 + 40 × 2,300 = 192,000; closing inventory 60 × 2,300 = 138,000. Check: 192,000 + 138,000 = 330,000.","es":""},"common_error":{"fr":"","en":"Issuing the batch bought at 2,300 first: under FIFO, the 50 t of opening inventory are issued first.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Opening inventory (50 t at 2,000)","es":""},"value":"100000","unit":"EUR"},{"label":{"fr":"","en":"Purchase (100 t at 2,300)","es":""},"value":"230000","unit":"EUR"},{"label":{"fr":"","en":"Quantity sold (t)","es":""},"value":"90","unit":"UNITS"}],"steps":[{"id":"S1","label":{"fr":"","en":"Cost of sales","es":""},"answer":192000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Closing inventory","es":""},"answer":138000,"tolerance":0,"unit":"EUR"}],"id":"P3","dimension":"CALCULATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000072","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST_FORMULAS.FIFO_WEIGHTED_AVERAGE"],"dimension":"APPLICATION","format":"ORDERING","context":"GENERIC","tested_point":"FIFO_STOCK_CARD_STEPS","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS2.000007","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000007","section_id":"how"},"references":["IAS 2 §27"],"exercise":{"prompt":{"fr":"","en":"Put in order the steps for calculating the cost of a sale under FIFO.","es":""},"explanation":{"fr":"","en":"FIFO assumes that the items received first are issued first: closing inventory therefore consists of the most recent receipts (IAS 2, para. 27).","es":""},"common_error":{"fr":"","en":"Drawing first on the most recent batch: FIFO draws on the oldest, then the next ones.","es":""},"format":"ORDERING","steps":[{"id":"S1","text":{"fr":"","en":"List the batches in stock, oldest to newest, with their quantity and unit cost","es":""}},{"id":"S2","text":{"fr":"","en":"Take the quantity sold from the oldest batch","es":""}},{"id":"S3","text":{"fr":"","en":"If that batch is exhausted, take the rest from the next batch","es":""}},{"id":"S4","text":{"fr":"","en":"Add up quantity × unit cost for each batch drawn","es":""}},{"id":"S5","text":{"fr":"","en":"Update the remaining batches, which form closing inventory","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000073","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.NRV.WRITE_DOWN"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"RETAIL","tested_point":"INDICATOR_IS_NOT_WRITE_DOWN","difficulty":"INTERMEDIATE","estimated_time_s":45,"lesson_id":"LS.IAS2.000008","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000008","section_id":"indicators"},"references":["IAS 2 §9","IAS 2 §28"],"exercise":{"prompt":{"fr":"","en":"Case data: sofas on display in a shop have slight scratches. Even after the discount given for this defect and the delivery costs, their selling price remains well above their cost. Because they are damaged, they must be written down.","es":""},"explanation":{"fr":"","en":"False. Damage is an indicator that cost may not be recoverable (IAS 2, para. 28): it requires NRV to be calculated. Here, NRV remains above cost; inventory is measured at the lower of the two, i.e. at cost (IAS 2, para. 9), with no write-down.","es":""},"common_error":{"fr":"","en":"Confusing the indicator (the damage) with the consequence (the write-down), which only exists if NRV is below cost.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000074","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.NRV.WRITE_DOWN"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"TEXTILE","tested_point":"GROUPING_OF_SIMILAR_ITEMS","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS2.000008","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000008","section_id":"item-by-item"},"references":["IAS 2 §29"],"exercise":{"prompt":{"fr":"","en":"A household linen manufacturer is preparing its NRV test. Which grouping is the most likely to be acceptable?","es":""},"explanation":{"fr":"","en":"Write-downs are usually assessed item by item; grouping may be appropriate for items of the same product line, with similar purposes or end uses, produced and marketed in the same area and not practicably evaluable separately, but never for a whole category or an entire operating segment (IAS 2, para. 29).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The different sizes of the same range of sheets, with the same use, produced and sold in Europe, that cannot practicably be evaluated separately by size","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"All the plant's finished goods, across all ranges","es":""},"correct":false,"feedback":{"fr":"","en":"A whole category of inventories (all finished goods) is not an appropriate basis.","es":""}},{"id":"C","text":{"fr":"","en":"All the inventories of the 'Hospitality' operating segment","es":""},"correct":false,"feedback":{"fr":"","en":"The inventories of an entire operating segment are not an appropriate group.","es":""}},{"id":"D","text":{"fr":"","en":"Sheets and curtains, because their combined NRV exceeds their combined cost","es":""},"correct":false,"feedback":{"fr":"","en":"Grouping so that gains cover shortfalls is the offsetting that the item-by-item test aims to prevent.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000075","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.NRV.WRITE_DOWN"],"dimension":"CALCULATION","format":"CALCULATION","context":"RETAIL","tested_point":"NRV_FINISHED_GOODS","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS2.000008","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000008","section_id":"nrv-calculation"},"references":["IAS 2 §6","IAS 2 §9"],"exercise":{"prompt":{"fr":"","en":"A household appliance distributor holds 250 coffee machines of an end-of-line model. Calculate NRV and the write-down at the reporting date.","es":""},"explanation":{"fr":"","en":"Costs of sale: 8% × 200 + 10 = 26. NRV = 200 − 26 = 174 (IAS 2, para. 6); finished goods have no costs of completion. NRV < cost: write-down 250 × (180 − 174) = 1,500; carrying amount 45,000 − 1,500 = 43,500 (IAS 2, para. 9).","es":""},"common_error":{"fr":"","en":"Comparing the price of 200 with the cost of 180 and concluding there is no write-down, forgetting the costs of sale.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Unit cost","es":""},"value":"180","unit":"EUR"},{"label":{"fr":"","en":"Estimated unit selling price","es":""},"value":"200","unit":"EUR"},{"label":{"fr":"","en":"Salesperson's commission (% of price)","es":""},"value":"8","unit":"PERCENT"},{"label":{"fr":"","en":"Delivery to the customer, per unit","es":""},"value":"10","unit":"EUR"},{"label":{"fr":"","en":"Quantity in inventory","es":""},"value":"250","unit":"UNITS"}],"steps":[{"id":"S1","label":{"fr":"","en":"Costs necessary to make the sale, per unit","es":""},"answer":26,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Unit NRV","es":""},"answer":174,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Total write-down","es":""},"answer":1500,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Carrying amount of the inventory after the write-down","es":""},"answer":43500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Costs necessary to make the sale, per unit","es":""},"expression":"a * b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Salesperson's commission (% of price)","es":""},"value":8,"unit":"PERCENT"},{"symbol":"b","meaning":{"fr":"","en":"Estimated unit selling price","es":""},"value":200,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Delivery to the customer, per unit","es":""},"value":10,"unit":"EUR"}],"result":26,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Unit NRV","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Estimated unit selling price","es":""},"value":200,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Costs necessary to make the sale, per unit","es":""},"value":26,"unit":"EUR"}],"result":174,"unit":"EUR"},{"step":"S3","meaning":{"fr":"","en":"Total write-down","es":""},"expression":"a * (b - c)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Quantity in inventory","es":""},"value":250,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Unit cost","es":""},"value":180,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Unit NRV","es":""},"value":174,"unit":"EUR"}],"result":1500,"unit":"EUR"}],"references":["REF.IAS2.6","REF.IAS2.9"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000076","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.NRV.WRITE_DOWN"],"dimension":"CALCULATION","format":"CALCULATION","context":"ELECTRONICS","tested_point":"NRV_WORK_IN_PROGRESS","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS2.000008","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000008","section_id":"nrv-calculation"},"references":["IAS 2 §6","IAS 2 §28"],"exercise":{"prompt":{"fr":"","en":"A drone assembler has 400 partly assembled units at the reporting date. The cost of the components needed to finish them has risen sharply. Calculate NRV and the write-down.","es":""},"explanation":{"fr":"","en":"NRV = 480 − 150 − 35 = 295 (IAS 2, para. 6). Higher costs of completion are an indicator that cost may not be recovered (IAS 2, para. 28). NRV < cost of 310: write-down 400 × 15 = 6,000; carrying amount 124,000 − 6,000 = 118,000.","es":""},"common_error":{"fr":"","en":"Comparing the price of 480 with the cost incurred of 310 without deducting the 150 of completion costs, or adding these 150 to the cost of the work in progress.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Cost already incurred per drone (work in progress)","es":""},"value":"310","unit":"EUR"},{"label":{"fr":"","en":"Estimated selling price of a finished drone","es":""},"value":"480","unit":"EUR"},{"label":{"fr":"","en":"Estimated costs to finish one drone","es":""},"value":"150","unit":"EUR"},{"label":{"fr":"","en":"Estimated costs of sale per drone","es":""},"value":"35","unit":"EUR"},{"label":{"fr":"","en":"Number of drones in progress","es":""},"value":"400","unit":"UNITS"}],"steps":[{"id":"S1","label":{"fr":"","en":"Unit NRV of the work in progress","es":""},"answer":295,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Total write-down","es":""},"answer":6000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Carrying amount of the work in progress","es":""},"answer":118000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Unit NRV of the work in progress","es":""},"expression":"a - b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Estimated selling price of a finished drone","es":""},"value":480,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Estimated costs to finish one drone","es":""},"value":150,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Estimated costs of sale per drone","es":""},"value":35,"unit":"EUR"}],"result":295,"unit":"EUR"}],"rationale":{"fr":"","en":"Higher costs of completion are an indicator that cost may not be recovered (IAS 2, para. 28).","es":""},"references":["REF.IAS2.6","REF.IAS2.28"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000077","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.NRV.WRITE_DOWN"],"dimension":"CALCULATION","format":"CALCULATION","context":"FOOD","tested_point":"ITEM_BY_ITEM_TABLE","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS2.000008","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000008","section_id":"item-by-item"},"references":["IAS 2 §9","IAS 2 §29"],"exercise":{"prompt":{"fr":"","en":"A food wholesaler presents four product lines at the reporting date. Calculate the write-down item by item and the total carrying amount.","es":""},"explanation":{"fr":"","en":"Each line is carried at the lower of cost and NRV (IAS 2, para. 9): A 18,000; B 23,900 (write-down 2,500); C 8,800 (write-down 800); D 14,000. Total 64,700; write-down 3,300. A global test (NRV 71,000 > cost 68,000) would make these losses disappear: it is excluded, as the test is item by item (IAS 2, para. 29).","es":""},"common_error":{"fr":"","en":"Comparing total NRV (71,000) with total cost (68,000) and concluding that no write-down is needed.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"A canned tomatoes — cost","es":""},"value":"18000","unit":"EUR"},{"label":{"fr":"","en":"A canned tomatoes — NRV","es":""},"value":"21500","unit":"EUR"},{"label":{"fr":"","en":"B frozen fish — cost","es":""},"value":"26400","unit":"EUR"},{"label":{"fr":"","en":"B frozen fish — NRV","es":""},"value":"23900","unit":"EUR"},{"label":{"fr":"","en":"C organic juices — cost","es":""},"value":"9600","unit":"EUR"},{"label":{"fr":"","en":"C organic juices — NRV","es":""},"value":"8800","unit":"EUR"},{"label":{"fr":"","en":"D spices — cost","es":""},"value":"14000","unit":"EUR"},{"label":{"fr":"","en":"D spices — NRV","es":""},"value":"16800","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Write-down of B","es":""},"answer":2500,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Write-down of C","es":""},"answer":800,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Total write-down","es":""},"answer":3300,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Total carrying amount of the four product lines","es":""},"answer":64700,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000078","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.NRV.SPECIFIC_SITUATIONS"],"dimension":"CALCULATION","format":"CALCULATION","context":"MANUFACTURING","tested_point":"FIRM_CONTRACT_NRV","difficulty":"EXPERT","estimated_time_s":240,"lesson_id":"LS.IAS2.000008","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000008","section_id":"firm-contracts"},"references":["IAS 2 §29","IAS 2 §31"],"exercise":{"prompt":{"fr":"","en":"A pump manufacturer holds 2,000 identical pumps. A firm contract requires it to deliver 1,200 of them at a low negotiated price. Assumption of the exercise (reading adopted by the course): the contracted quantity and the excess are compared with their cost separately, without offsetting. Calculate the write-down.","es":""},"explanation":{"fr":"","en":"Contracted quantity: NRV based on the contract price, 72 − 2 = 70 (IAS 2, para. 31); 70 < 75 → write-down 1,200 × 5 = 6,000. Excess of 800 pumps: NRV based on general selling prices, 90 − 3 = 87 (IAS 2, para. 31); 87 > 75 → no write-down. Under the reading adopted (separate test, consistent with the no-offsetting logic of para. 29), the write-down is 6,000. A global comparison (84,000 + 69,600 = 153,600 > 150,000) would give none; the standard does not state this reading expressly.","es":""},"common_error":{"fr":"","en":"Applying the contract price to all 2,000 pumps (write-down 10,000), although the excess follows general selling prices.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Unit cost of a pump","es":""},"value":"75","unit":"EUR"},{"label":{"fr":"","en":"Quantity covered by the firm contract","es":""},"value":"1200","unit":"UNITS"},{"label":{"fr":"","en":"Contract price, per pump","es":""},"value":"72","unit":"EUR"},{"label":{"fr":"","en":"Costs of sale under the contract, per pump","es":""},"value":"2","unit":"EUR"},{"label":{"fr":"","en":"General selling price, per pump","es":""},"value":"90","unit":"EUR"},{"label":{"fr":"","en":"Costs of sale outside the contract, per pump","es":""},"value":"3","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Unit NRV of the contracted quantity","es":""},"answer":70,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Unit NRV of the excess","es":""},"answer":87,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Write-down of the contracted quantity","es":""},"answer":6000,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Write-down of the excess","es":""},"answer":0,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Unit NRV of the contracted quantity","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Contract price, per pump","es":""},"value":72,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Costs of sale under the contract, per pump","es":""},"value":2,"unit":"EUR"}],"result":70,"unit":"EUR","rationale":{"fr":"","en":"Contracted quantity: NRV based on the contract price, 72 − 2 = 70 (IAS 2, para. 31)","es":""}},{"step":"S2","meaning":{"fr":"","en":"Unit NRV of the excess","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"General selling price, per pump","es":""},"value":90,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Costs of sale outside the contract, per pump","es":""},"value":3,"unit":"EUR"}],"result":87,"unit":"EUR","rationale":{"fr":"","en":"Excess of 800 pumps: NRV based on general selling prices, 90 − 3 = 87 (IAS 2, para. 31)","es":""}},{"step":"S3","meaning":{"fr":"","en":"Write-down of the contracted quantity","es":""},"expression":"a * 5","variables":[{"symbol":"a","meaning":{"fr":"","en":"Quantity covered by the firm contract","es":""},"value":1200,"unit":"UNITS"}],"result":6000,"unit":"EUR"}],"references":["REF.IAS2.31"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000079","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.NRV.SPECIFIC_SITUATIONS"],"dimension":"CALCULATION","format":"CALCULATION","context":"ENERGY","tested_point":"RAW_MATERIALS_REPLACEMENT_COST","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS2.000008","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000008","section_id":"raw-materials"},"references":["IAS 2 §32"],"exercise":{"prompt":{"fr":"","en":"A biofuel producer holds 2,000 t of vegetable oil held for its production, whose market price has fallen. Scenario 1: the biofuel will sell above its production cost. Scenario 2: the cost of the biofuel will exceed its NRV. Calculate the write-down of the materials in the two scenarios. Assumption of the exercise: in scenario 2, replacement cost is used as the best available measure of the materials' NRV.","es":""},"explanation":{"fr":"","en":"Scenario 1: the finished products will sell above their cost, so the materials are not written down below cost despite the price fall (IAS 2, para. 32). Scenario 2: the fall indicates that the cost of the finished products will exceed their NRV, so the materials are written down; using replacement cost as the measure (the standard says it may be the best available measure, IAS 2, para. 32): 2,000 × (450 − 400) = 100,000; carrying amount 900,000 − 100,000 = 800,000.","es":""},"common_error":{"fr":"","en":"Writing down the materials in scenario 1 merely because their market price has fallen, without looking at the finished product.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Cost of the oil in inventory, per tonne","es":""},"value":"450","unit":"EUR"},{"label":{"fr":"","en":"Replacement cost at the reporting date, per tonne","es":""},"value":"400","unit":"EUR"},{"label":{"fr":"","en":"Quantity (t)","es":""},"value":"2000","unit":"UNITS"}],"steps":[{"id":"S1","label":{"fr":"","en":"Write-down of the materials, scenario 1","es":""},"answer":0,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Write-down of the materials, scenario 2","es":""},"answer":100000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Carrying amount of the materials, scenario 2","es":""},"answer":800000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Write-down of the materials, scenario 2","es":""},"expression":"a * (b - c)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Quantity (t)","es":""},"value":2000,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Cost of the oil in inventory, per tonne","es":""},"value":450,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Replacement cost at the reporting date, per tonne","es":""},"value":400,"unit":"EUR"}],"result":100000,"unit":"EUR"}],"rationale":{"fr":"","en":"Scenario 1: the finished products will sell above their cost, so the materials are not written down below cost despite the price fall (IAS 2, para. 32).","es":""},"references":["REF.IAS2.32"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000080","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.NRV.WRITE_DOWN"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"ELECTRONICS","tested_point":"WRITE_DOWN_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS2.000008","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000008","section_id":"entry"},"references":["IAS 2 §34"],"exercise":{"prompt":{"fr":"","en":"Case data: a drone assembler's work in progress (cost 124,000) has an NRV of 118,000 at the reporting date. The entity records its write-downs in a contra account (assumption of the exercise). Record the entry.","es":""},"explanation":{"fr":"","en":"Write-down = 124,000 − 118,000 = 6,000. It is recognised as an expense in the period in which it occurs (IAS 2, para. 34) and reduces the inventory carried in assets, here through a contra account. Neither other comprehensive income, nor a provision in liabilities, nor a reduction of revenue is appropriate.","es":""},"common_error":{"fr":"","en":"Taking the write-down to OCI, a provision or a reduction of sales: it is an expense of the period that reduces inventory.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"INVENTORY_WRITE_DOWN_EXPENSE","text":{"fr":"","en":"Inventory write-down expense","es":""}},{"id":"INVENTORY_WRITE_DOWN_ALLOWANCE","text":{"fr":"","en":"Inventory write-down allowance (contra account)","es":""}},{"id":"OCI_RESERVE","text":{"fr":"","en":"Reserve (other comprehensive income)","es":""}},{"id":"PROVISION_LIABILITY","text":{"fr":"","en":"Provision (liability)","es":""}},{"id":"REVENUE","text":{"fr":"","en":"Revenue","es":""}}],"lines":[{"id":"L1","account":"INVENTORY_WRITE_DOWN_EXPENSE","side":"DEBIT","amount":6000},{"id":"L2","account":"INVENTORY_WRITE_DOWN_ALLOWANCE","side":"CREDIT","amount":6000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000081","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.NRV.WRITE_DOWN"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"FOOD","tested_point":"ITEM_LEVEL_WRITE_DOWN_ENTRY","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IAS2.000008","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000008","section_id":"entry"},"references":["IAS 2 §29","IAS 2 §34"],"exercise":{"prompt":{"fr":"","en":"Case data: at the reporting date, a food wholesaler identifies, item by item, a write-down of 2,500 on frozen fish and 800 on organic juices; its canned goods and spices remain at cost. It tracks its write-downs by product line in contra accounts (assumption of the exercise). Record the entry.","es":""},"explanation":{"fr":"","en":"The write-down is determined item by item (IAS 2, para. 29): 2,500 + 800 = 3,300, as an expense of the period (IAS 2, para. 34). The spices, whose NRV exceeds cost, are not written down; their unrealised gain does not reduce the expense. Tracking by product line will make it possible to handle sales or any reversal item by item.","es":""},"common_error":{"fr":"","en":"Offsetting the write-downs with the spices' unrealised gain: the test is item by item; unrealised gains do not reduce the expense.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"INVENTORY_WRITE_DOWN_EXPENSE","text":{"fr":"","en":"Inventory write-down expense","es":""}},{"id":"ALLOWANCE_FISH","text":{"fr":"","en":"Inventory write-down allowance — frozen fish","es":""}},{"id":"ALLOWANCE_JUICE","text":{"fr":"","en":"Inventory write-down allowance — organic juices","es":""}},{"id":"ALLOWANCE_SPICES","text":{"fr":"","en":"Inventory write-down allowance — spices","es":""}},{"id":"MERCHANDISE_INVENTORY","text":{"fr":"","en":"Merchandise inventory","es":""}}],"lines":[{"id":"L1","account":"INVENTORY_WRITE_DOWN_EXPENSE","side":"DEBIT","amount":3300},{"id":"L2","account":"ALLOWANCE_FISH","side":"CREDIT","amount":2500},{"id":"L3","account":"ALLOWANCE_JUICE","side":"CREDIT","amount":800}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000082","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.NRV.WRITE_DOWN"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"RETAIL","tested_point":"NO_OFFSETTING_BETWEEN_ITEMS","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS2.000008","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000008","section_id":"item-by-item"},"references":["IAS 2 §6","IAS 2 §9","IAS 2 §29","IAS 2 §34"],"exercise":{"prompt":{"fr":"","en":"Here is the year-end memo of a furniture store. Spot the erroneous statements.","es":""},"explanation":{"fr":"","en":"NRV = estimated price − costs of sale (IAS 2, para. 6); each item is carried at the lower of cost and NRV (IAS 2, para. 9), item by item (IAS 2, para. 29); the write-down of 7,000 (42,000 − 35,000) is an expense of the year just ended (IAS 2, para. 34).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"'Oslo' sofas: cost 42,000, NRV 35,000. 'Linea' tables: cost 30,000, NRV 41,000. Total NRV (76,000) exceeds total cost (72,000): no write-down.","es":""},"erroneous":true,"correction":{"fr":"","en":"The test is done item by item, without offsetting the shortfall on one item against the gain on another (IAS 2, para. 29): the sofas are written down by 7,000.","es":""}},{"id":"S2","text":{"fr":"","en":"The NRV of the sofas is their estimated selling price less commissions and delivery costs.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"The tables stay at their cost of 30,000: they are not carried at their NRV of 41,000.","es":""},"erroneous":false},{"id":"S4","text":{"fr":"","en":"The loss on the sofas will be recognised next year, when they are sold.","es":""},"erroneous":true,"correction":{"fr":"","en":"The write-down is an expense of the period in which it occurs, i.e. the year just ended (IAS 2, para. 34).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000083","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.NRV.WRITE_DOWN","IAS2.NRV.SPECIFIC_SITUATIONS"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"CHEMICALS","tested_point":"NO_WRITE_DOWN_BY_CATEGORY","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS2.000008","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000008","section_id":"item-by-item"},"references":["IAS 2 §6","IAS 2 §29","IAS 2 §32"],"exercise":{"prompt":{"fr":"","en":"A paint manufacturer describes its inventory write-down method. Spot the erroneous statements.","es":""},"explanation":{"fr":"","en":"No flat write-down by category; a group of similar items may be acceptable under the conditions of para. 29 (IAS 2, para. 29). Work in progress has an NRV that deducts the costs of completion (IAS 2, para. 6). Materials are not written down if the finished products sell at or above cost (IAS 2, para. 32).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"Every year, we write down all finished goods by a flat 5%, without any calculation by product.","es":""},"erroneous":true,"correction":{"fr":"","en":"Writing down on the basis of a whole category (all finished goods) is not appropriate: NRV is assessed item by item, or by group of truly similar items (IAS 2, para. 29).","es":""}},{"id":"S2","text":{"fr":"","en":"Paints in process are excluded from the test, since they cannot be sold as they are.","es":""},"erroneous":true,"correction":{"fr":"","en":"Work in progress is tested: its NRV is the estimated selling price of the finished product, less the costs of completion and the costs of sale (IAS 2, para. 6).","es":""}},{"id":"S3","text":{"fr":"","en":"The shades of the same range of wall paint, with the same use, produced and sold in the same region and that cannot be evaluated separately, are tested together.","es":""},"erroneous":false},{"id":"S4","text":{"fr":"","en":"Pigments whose market price has fallen are not written down, because the paints that incorporate them continue to sell above their cost.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000084","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.NRV.WRITE_DOWN"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"ELECTRONICS","tested_point":"EVENTS_AFTER_REPORTING_PERIOD","difficulty":"EXPERT","estimated_time_s":300,"lesson_id":"LS.IAS2.000008","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000008","section_id":"estimates-and-events"},"references":["IAS 2 §6","IAS 2 §30"],"exercise":{"prompt":{"fr":"","en":"Analyse the events after the reporting period and answer the questions.","es":""},"explanation":{"fr":"","en":"What matters is whether the condition existed at the reporting date: a defect present from production confirms conditions at the reporting date and reduces NRV for N (IAS 2, para. 30); a loss event or a competitor's decision after the reporting date does not change it. The classification of the competitor launch rests on the fact, given in the case, that it was unknown at the reporting date.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Case data: a tablet distributor's reporting date is 31 December N; the financial statements are finalised on 15 March N+1. At 31 December, it holds 600 model T tablets, at a unit cost of 220. At that time it expected to sell them for 260, with costs of sale of 15 per unit.","es":""},"exhibits":[{"title":{"fr":"","en":"Events from January to March N+1","es":""},"body":{"fr":"","en":"1. January: the manufacturer confirms a battery defect affecting all model T units produced in N; the tablets now sell for only 225, costs of sale unchanged.\n2. February: water damage destroys 40 headsets stored in another building.\n3. March: a competitor launches a new model, unknown at the reporting date; headset prices fall.","es":""}}],"parts":[{"prompt":{"fr":"","en":"Classify each event: is it taken into account in NRV at 31 December N?","es":""},"explanation":{"fr":"","en":"The defect existed in the tablets from production: the January information confirms a condition existing at the reporting date and is taken into account (IAS 2, para. 30). The water damage and the competitor launch are new situations, arising after the reporting date.","es":""},"common_error":{"fr":"","en":"Including the water damage or the competitor's launch in closing NRV: these conditions arose after the reporting date.","es":""},"format":"CLASSIFICATION","categories":[{"id":"INCLUDED","text":{"fr":"","en":"Taken into account","es":""}},{"id":"NOT_INCLUDED","text":{"fr":"","en":"Not taken into account","es":""}}],"items":[{"id":"E1","text":{"fr":"","en":"Battery defect in model T units produced in N","es":""},"category":"INCLUDED"},{"id":"E2","text":{"fr":"","en":"February water damage","es":""},"category":"NOT_INCLUDED"},{"id":"E3","text":{"fr":"","en":"Competitor launch in March","es":""},"category":"NOT_INCLUDED"}],"id":"P1","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"Calculate the unit NRV of the T tablets and the write-down at 31 December N.","es":""},"explanation":{"fr":"","en":"NRV = 225 − 15 = 210 (IAS 2, para. 6); write-down 600 × (220 − 210) = 6,000, recognised in the year N financial statements.","es":""},"common_error":{"fr":"","en":"Comparing cost with the revised price without deducting selling costs: NRV is price less the costs necessary to sell.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Revised selling price","es":""},"value":"225","unit":"EUR"},{"label":{"fr":"","en":"Unit costs of sale","es":""},"value":"15","unit":"EUR"},{"label":{"fr":"","en":"Unit cost","es":""},"value":"220","unit":"EUR"},{"label":{"fr":"","en":"Quantity","es":""},"value":"600","unit":"UNITS"}],"steps":[{"id":"S1","label":{"fr":"","en":"Unit NRV","es":""},"answer":210,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Write-down at 31 December N","es":""},"answer":6000,"tolerance":0,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Unit NRV","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Revised selling price","es":""},"value":225,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Unit costs of sale","es":""},"value":15,"unit":"EUR"}],"result":210,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Write-down at 31 December N","es":""},"expression":"a * (b - c)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Quantity","es":""},"value":600,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Unit cost","es":""},"value":220,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Unit NRV","es":""},"value":210,"unit":"EUR"}],"result":6000,"unit":"EUR"}],"rationale":{"fr":"","en":"NRV = 225 − 15 = 210 (IAS 2, para. 6)","es":""},"references":["REF.IAS2.6"]}},{"prompt":{"fr":"","en":"On what basis must NRV be estimated?","es":""},"explanation":{"fr":"","en":"NRV is based on the most reliable evidence available at the time of the estimate, taking into account events after the period to the extent that they confirm conditions at the reporting date (IAS 2, para. 30).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The most reliable evidence available at the time the estimate is made","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Only the list price in force at 31 December","es":""},"correct":false,"feedback":{"fr":"","en":"A list price can be superseded by more reliable information, such as the defect confirmed in January.","es":""}},{"id":"C","text":{"fr":"","en":"All events known at the date the financial statements are finalised, whatever their cause","es":""},"correct":false,"feedback":{"fr":"","en":"Only events that confirm conditions existing at the reporting date are included.","es":""}}],"id":"P3","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000085","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.NRV.SPECIFIC_SITUATIONS"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"FOOD","tested_point":"RAW_MATERIALS_FINISHED_PRODUCT_TEST","difficulty":"EXPERT","estimated_time_s":300,"lesson_id":"LS.IAS2.000008","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000008","section_id":"raw-materials"},"references":["IAS 2 §32"],"exercise":{"prompt":{"fr":"","en":"Analyse the inventory of cocoa beans and answer the questions.","es":""},"explanation":{"fr":"","en":"The materials test goes through the finished product (IAS 2, para. 32): no write-down for the beans intended for a profitable product; a write-down for those intended for a product whose cost will exceed its NRV. The allocation of the beans to the two products rests on the production plan, case data that involves judgment and must be documented.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Case data: a chocolate maker holds 300 t of cocoa beans at a cost of 6,000 / t (1,800,000). At the reporting date, the price of beans has fallen to 5,200 / t, which is also their replacement cost. Under the production plan (case data), 200 t will be used to make dark chocolate bars and 100 t festive pralines.","es":""},"exhibits":[{"title":{"fr":"","en":"Forecast profitability of the finished products","es":""},"body":{"fr":"","en":"| Product | Expected cost | Expected NRV |\n| --- | --- | --- |\n| Dark chocolate bars | 9.00 per bar | 11.50 per bar |\n| Festive pralines | 14.00 per box | 13.00 per box |","es":""}}],"parts":[{"prompt":{"fr":"","en":"Must the 200 t intended for the dark chocolate bars be written down?","es":""},"explanation":{"fr":"","en":"Materials are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost (IAS 2, para. 32): NRV of the bars 11.50 > cost 9.00.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Yes, by 800 / t, because the market price has fallen","es":""},"correct":false,"feedback":{"fr":"","en":"The fall in price is not enough: the finished product must be looked at first.","es":""}},{"id":"B","text":{"fr":"","en":"No, because the bars will sell above their cost","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Yes, but only by half of the fall, out of prudence","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 2 provides for no partial 'prudence' write-down.","es":""}}],"id":"P1","dimension":"APPLICATION"},{"prompt":{"fr":"","en":"Assumption of the exercise: for the 100 t intended for the pralines, replacement cost is used as the best available measure of NRV. Calculate the write-down.","es":""},"explanation":{"fr":"","en":"The cost of the pralines (14.00) will exceed their NRV (13.00): the corresponding beans are written down (IAS 2, para. 32). Using replacement cost: 100 × (6,000 − 5,200) = 80,000. Carrying amount: 1,800,000 − 80,000 = 1,720,000.","es":""},"common_error":{"fr":"","en":"Writing down all the beans: only those for the pralines, whose cost will exceed NRV, are written down.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Quantity intended for the pralines (t)","es":""},"value":"100","unit":"UNITS"},{"label":{"fr":"","en":"Cost per tonne","es":""},"value":"6000","unit":"EUR"},{"label":{"fr":"","en":"Replacement cost per tonne","es":""},"value":"5200","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Write-down of the beans intended for the pralines","es":""},"answer":80000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Total carrying amount of the 300 t after the write-down","es":""},"answer":1720000,"tolerance":0,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Write-down of the beans intended for the pralines","es":""},"expression":"a * (b - c)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Quantity intended for the pralines (t)","es":""},"value":100,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Cost per tonne","es":""},"value":6000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Replacement cost per tonne","es":""},"value":5200,"unit":"EUR"}],"result":80000,"unit":"EUR"}],"rationale":{"fr":"","en":"The cost of the pralines (14.00) will exceed their NRV (13.00): the corresponding beans are written down (IAS 2, para. 32).","es":""},"references":["REF.IAS2.32"]}},{"prompt":{"fr":"","en":"Under IAS 2, replacement cost is, in all cases, the NRV of raw materials.","es":""},"explanation":{"fr":"","en":"False. When materials must be written down, their replacement cost may be the best available measure of their NRV (IAS 2, para. 32): it is a possibility, not an automatic rule.","es":""},"common_error":{"fr":"","en":"Making replacement cost an automatic rule: it may be the best available measure of NRV; it is not mandatory.","es":""},"format":"TRUE_FALSE","answer":false,"id":"P3","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000086","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.NRV.WRITE_DOWN","IAS2.NRV.SPECIFIC_SITUATIONS"],"dimension":"APPLICATION","format":"CLASSIFICATION","context":"MANUFACTURING","tested_point":"WRITE_DOWN_DECISION","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IAS2.000008","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000008","section_id":"how"},"references":["IAS 2 §9","IAS 2 §28","IAS 2 §31","IAS 2 §32"],"exercise":{"prompt":{"fr":"","en":"For each situation at the reporting date, is a write-down of the inventories concerned needed?","es":""},"explanation":{"fr":"","en":"An indicator (damage, obsolescence, falling prices, higher costs of completion, IAS 2, para. 28) leads to a write-down only if NRV is below cost (IAS 2, para. 9). The quantity under a firm contract is measured at the contract price (IAS 2, para. 31). Materials incorporated into products sold at a margin are not written down (IAS 2, para. 32).","es":""},"common_error":{"fr":"","en":"Writing down as soon as there is an indicator: NRV must also be below cost; damaged goods still sold at a profit are not written down.","es":""},"format":"CLASSIFICATION","categories":[{"id":"WRITE_DOWN","text":{"fr":"","en":"Write-down needed","es":""}},{"id":"NO_WRITE_DOWN","text":{"fr":"","en":"No write-down","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Cartons damaged in transit; the goods still sell 20% above cost, after deducting costs of sale","es":""},"category":"NO_WRITE_DOWN"},{"id":"I2","text":{"fr":"","en":"Spare parts for a machine withdrawn from the market, resaleable only at half their cost","es":""},"category":"WRITE_DOWN"},{"id":"I3","text":{"fr":"","en":"Steel whose price has fallen, incorporated into finished products sold at a comfortable margin","es":""},"category":"NO_WRITE_DOWN"},{"id":"I4","text":{"fr":"","en":"Work in progress whose costs of completion have risen so much that price − costs of completion − costs of sale < cost incurred","es":""},"category":"WRITE_DOWN"},{"id":"I5","text":{"fr":"","en":"Quantity reserved for a firm contract whose price, after deducting costs of sale, is below cost","es":""},"category":"WRITE_DOWN"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000087","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.NRV.REVERSAL"],"dimension":"CALCULATION","format":"CALCULATION","context":"ELECTRONICS","tested_point":"PARTIAL_REVERSAL","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS2.000009","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000009","section_id":"reversal-cap"},"references":["IAS 2 §33"],"exercise":{"prompt":{"fr":"","en":"Case data: the distributor Voltaris holds 1,200 wireless headsets at a unit cost of EUR 85. At the end of N, the launch of a competing model brought net realisable value down to EUR 70 per unit. No headsets are sold in N+1. At the end of N+1, after the competing model was withdrawn because of a safety defect, net realisable value has risen to EUR 78 per unit (increase considered clearly evidenced). Calculate.","es":""},"explanation":{"fr":"","en":"End of N: cost 1,200 × 85 = 102,000; net realisable value 1,200 × 70 = 84,000; write-down 18,000. End of N+1: net realisable value is reassessed (IAS 2, para. 33): 1,200 × 78 = 93,600, still below the cost of 102,000. New carrying amount = lower of cost and revised net realisable value = 93,600. Reversal = 93,600 − 84,000 = 9,600, below the original write-down of 18,000: partial reversal; 8,400 of write-down remains.","es":""},"common_error":{"fr":"","en":"Reversing the whole write-down (18,000) as soon as the price rises, although revised net realisable value is still below cost.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Quantity held","es":""},"value":"1200","unit":"UNITS"},{"label":{"fr":"","en":"Unit cost","es":""},"value":"85","unit":"EUR"},{"label":{"fr":"","en":"Unit net realisable value at the end of N","es":""},"value":"70","unit":"EUR"},{"label":{"fr":"","en":"Unit net realisable value at the end of N+1","es":""},"value":"78","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Write-down recognised at the end of N","es":""},"answer":18000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Carrying amount at the end of N","es":""},"answer":84000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"New carrying amount at the end of N+1","es":""},"answer":93600,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Reversal of the write-down in N+1","es":""},"answer":9600,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Carrying amount at the end of N","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Quantity held","es":""},"value":1200,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Unit net realisable value at the end of N","es":""},"value":70,"unit":"EUR"}],"result":84000,"unit":"EUR"},{"step":"S3","meaning":{"fr":"","en":"New carrying amount at the end of N+1","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Quantity held","es":""},"value":1200,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Unit net realisable value at the end of N+1","es":""},"value":78,"unit":"EUR"}],"result":93600,"unit":"EUR","rationale":{"fr":"","en":"End of N+1: net realisable value is reassessed (IAS 2, para. 33): 1,200 × 78 = 93,600, still below the cost of 102,000.","es":""}},{"step":"S4","meaning":{"fr":"","en":"Reversal of the write-down in N+1","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"New carrying amount at the end of N+1","es":""},"value":93600,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Carrying amount at the end of N","es":""},"value":84000,"unit":"EUR"}],"result":9600,"unit":"EUR"}],"references":["REF.IAS2.33"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000088","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.NRV.REVERSAL"],"dimension":"CALCULATION","format":"CALCULATION","context":"RETAIL","tested_point":"REVERSAL_CAPPED_AT_COST","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS2.000009","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000009","section_id":"reversal-cap"},"references":["IAS 2 §33"],"exercise":{"prompt":{"fr":"","en":"Case data: the garden centre chain Jardilys holds 400 garden furniture sets at a unit cost of EUR 250. At the end of N, a rainy summer brought net realisable value down to EUR 210 per unit. The 400 sets are still held at the end of N+1, when strong demand driven by a new consumer trend (change in economic circumstances clearly evidenced by orders received) raises net realisable value to EUR 290 per unit. Calculate.","es":""},"explanation":{"fr":"","en":"End of N: carrying amount 400 × 210 = 84,000 (cost 100,000, write-down 16,000). End of N+1: revised net realisable value 400 × 290 = 116,000, above the cost of 100,000. The new carrying amount is the lower of cost and revised net realisable value, i.e. 100,000; the reversal is limited to the amount of the original write-down: 16,000, not 400 × (290 − 210) = 32,000 (IAS 2, para. 33).","es":""},"common_error":{"fr":"","en":"Calculating the reversal as quantity × price increase (32,000) and carrying the inventory at 116,000, above its cost.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Quantity held","es":""},"value":"400","unit":"UNITS"},{"label":{"fr":"","en":"Unit cost","es":""},"value":"250","unit":"EUR"},{"label":{"fr":"","en":"Unit net realisable value at the end of N","es":""},"value":"210","unit":"EUR"},{"label":{"fr":"","en":"Unit net realisable value at the end of N+1","es":""},"value":"290","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Carrying amount at the end of N","es":""},"answer":84000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"New carrying amount at the end of N+1","es":""},"answer":100000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Reversal of the write-down in N+1","es":""},"answer":16000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Carrying amount at the end of N","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Quantity held","es":""},"value":400,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Unit net realisable value at the end of N","es":""},"value":210,"unit":"EUR"}],"result":84000,"unit":"EUR"}],"references":["REF.IAS2.33"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000089","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.NRV.REVERSAL"],"dimension":"CALCULATION","format":"CALCULATION","context":"FOOD","tested_point":"ADDITIONAL_WRITE_DOWN_AFTER_PARTIAL_SALE","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS2.000009","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000009","section_id":"numeric-example"},"references":["IAS 2 §33","IAS 2 §34"],"exercise":{"prompt":{"fr":"","en":"Case data: Conserverie Marelle holds, at the end of N, 10,000 jars of soup at a unit cost of EUR 2.40, written down to their net realisable value of EUR 2.10. In N+1, 4,000 jars are sold; the related write-down leaves with them (accounting presentation used). At the end of N+1, competition from a retailer's own brand brings the net realisable value of the remaining jars down to EUR 1.90. Calculate.","es":""},"explanation":{"fr":"","en":"6,000 jars remain: cost 14,400, remaining write-down 6,000 × 0.30 = 1,800, carrying amount 6,000 × 2.10 = 12,600. Revised net realisable value: 6,000 × 1.90 = 11,400, below cost. New carrying amount = 11,400 (IAS 2, para. 33). This is not a reversal but an additional write-down of 12,600 − 11,400 = 1,200, an expense of N+1 (IAS 2, para. 34).","es":""},"common_error":{"fr":"","en":"Working on the 10,000 jars held at the end of N (write-down of 2,000) instead of the 6,000 still held.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Quantity at the end of N","es":""},"value":"10000","unit":"UNITS"},{"label":{"fr":"","en":"Quantity sold in N+1","es":""},"value":"4000","unit":"UNITS"},{"label":{"fr":"","en":"Unit cost","es":""},"value":"2.40","unit":"EUR"},{"label":{"fr":"","en":"Unit net realisable value at the end of N","es":""},"value":"2.10","unit":"EUR"},{"label":{"fr":"","en":"Unit net realisable value at the end of N+1","es":""},"value":"1.90","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Carrying amount of the remaining jars before reassessment","es":""},"answer":12600,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"New carrying amount at the end of N+1","es":""},"answer":11400,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Additional write-down in N+1","es":""},"answer":1200,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S3","meaning":{"fr":"","en":"Additional write-down in N+1","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of the remaining jars before reassessment","es":""},"value":12600,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"New carrying amount at the end of N+1","es":""},"value":11400,"unit":"EUR"}],"result":1200,"unit":"EUR","rationale":{"fr":"","en":"This is not a reversal but an additional write-down of 12,600 − 11,400 = 1,200, an expense of N+1 (IAS 2, para. 34).","es":""}}],"references":["REF.IAS2.33","REF.IAS2.34"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000090","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.NRV.REVERSAL"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"TELECOM","tested_point":"REVERSAL_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS2.000009","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000009","section_id":"entry"},"references":["IAS 2 §33","IAS 2 §34"],"exercise":{"prompt":{"fr":"","en":"Case data: the operator Ondalis holds 600 routers for resale, at a unit cost of EUR 120, written down at the end of N to their net realisable value of EUR 105 (write-down tracked in a contra account). The 600 routers are still held at the end of N+1, when the market price has recovered: net realisable value EUR 112 per unit. Record the year-end entry for N+1 (perpetual inventory, generic accounts).","es":""},"explanation":{"fr":"","en":"Cost 600 × 120 = 72,000; carrying amount at the end of N 600 × 105 = 63,000 (write-down 9,000). Revised net realisable value 600 × 112 = 67,200, below cost: new carrying amount 67,200, reversal 4,200 (IAS 2, para. 33). The reversal reduces the contra account and is a reduction in the amount of inventories recognised as an expense in N+1 (IAS 2, para. 34); the inventory account stays at cost, and nothing goes to other comprehensive income.","es":""},"common_error":{"fr":"","en":"Crediting an equity or other comprehensive income account, as for a revaluation of property, plant and equipment.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"INVENTORY_ALLOWANCE","text":{"fr":"","en":"Inventory write-down allowance (contra account)","es":""}},{"id":"REVERSAL_IN_INVENTORY_EXPENSE","text":{"fr":"","en":"Reversal of inventory write-down (reduction in the amount of inventories recognised as an expense)","es":""}},{"id":"INVENTORIES","text":{"fr":"","en":"Merchandise inventory","es":""}},{"id":"OTHER_COMPREHENSIVE_INCOME","text":{"fr":"","en":"Other comprehensive income","es":""}},{"id":"WRITE_DOWN_EXPENSE","text":{"fr":"","en":"Inventory write-down expense","es":""}}],"lines":[{"id":"L1","account":"INVENTORY_ALLOWANCE","side":"DEBIT","amount":4200},{"id":"L2","account":"REVERSAL_IN_INVENTORY_EXPENSE","side":"CREDIT","amount":4200}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000091","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.NRV.REVERSAL","IAS2.EXPENSE_RECOGNITION.RULES"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"AUTOMOTIVE","tested_point":"SALE_OF_WRITTEN_DOWN_UNITS","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS2.000009","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000009","section_id":"entry"},"references":["IAS 2 §34"],"exercise":{"prompt":{"fr":"","en":"Case data: the distributor Pneumatix holds, at the end of N, 1,000 tyres from an old range at a unit cost of EUR 60, written down to EUR 54 each (write-down of 6,000 tracked in a contra account). In February N+1, 300 tyres are sold. Record the derecognition of these 300 tyres from inventory (perpetual inventory). Accounting presentation used for the exercise: the write-down on the units sold leaves with them.","es":""},"explanation":{"fr":"","en":"On sale, it is the carrying amount of the inventories sold that is expensed, in the period in which the revenue is recognised (IAS 2, para. 34): 300 × 54 = 16,200. The inventory is derecognised at its cost (300 × 60 = 18,000) and the write-down attached to these units (300 × 6 = 1,800) is cleared. This is not a reversal: net realisable value has not been reassessed; the units have simply left inventory.","es":""},"common_error":{"fr":"","en":"Charging 18,000 to cost of sales and 1,800 as a reversal: the total expense is the same, but the reversal shown is fictitious and distorts the disclosure of reversals.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"COST_OF_SALES","text":{"fr":"","en":"Cost of sales","es":""}},{"id":"INVENTORY_ALLOWANCE","text":{"fr":"","en":"Inventory write-down allowance (contra account)","es":""}},{"id":"INVENTORIES","text":{"fr":"","en":"Merchandise inventory","es":""}},{"id":"REVERSAL_IN_INVENTORY_EXPENSE","text":{"fr":"","en":"Reversal of inventory write-down","es":""}}],"lines":[{"id":"L1","account":"COST_OF_SALES","side":"DEBIT","amount":16200},{"id":"L2","account":"INVENTORY_ALLOWANCE","side":"DEBIT","amount":1800},{"id":"L3","account":"INVENTORIES","side":"CREDIT","amount":18000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000092","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.NRV.REVERSAL"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"RETAIL","tested_point":"REVERSAL_ERRORS","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS2.000009","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000009","section_id":"pitfalls"},"references":["IAS 2 §33","IAS 2 §34"],"exercise":{"prompt":{"fr":"","en":"A management accountant at a chain of sports shops has drafted the following closing memo on inventory write-downs. Spot the incorrect statements.","es":""},"explanation":{"fr":"","en":"Net realisable value is reassessed every period for the items still held; the reversal is capped at the original write-down (IAS 2, para. 33) and reduces the amount of inventories recognised as an expense (IAS 2, para. 34). S1 and S4 are correct; S2, S3 and S5 are incorrect.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"This year we recalculated the net realisable value of all items written down last year and still on the shelves.","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"Electric bikes, written down by EUR 30,000 last year, have seen their price recover by EUR 45,000 in total: we have carried them at the new net realisable value, i.e. EUR 15,000 above their cost.","es":""},"erroneous":true,"correction":{"fr":"","en":"The reversal is limited to the original write-down (EUR 30,000): the carrying amount is brought back to cost, which is lower than revised net realisable value (IAS 2, para. 33).","es":""}},{"id":"S3","text":{"fr":"","en":"The reversal of the write-down on the bikes was recorded in 'other operating income', unrelated to the cost of inventories.","es":""},"erroneous":true,"correction":{"fr":"","en":"The reversal is a reduction in the amount of inventories recognised as an expense in the period (IAS 2, para. 34).","es":""}},{"id":"S4","text":{"fr":"","en":"For rackets, whose price has not changed, last year's write-down was kept after checking the new net realisable value.","es":""},"erroneous":false},{"id":"S5","text":{"fr":"","en":"We reversed the write-down on the skis sold during the winter, since those items are no longer in inventory.","es":""},"erroneous":true,"correction":{"fr":"","en":"The write-down on items sold leaves with them on sale (their carrying amount is expensed, IAS 2, para. 34); a reversal only concerns items still held whose net realisable value rises (IAS 2, para. 33).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000093","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.NRV.REVERSAL","IAS2.EXPENSE_RECOGNITION.RULES"],"dimension":"APPLICATION","format":"MINI_CASE","context":"SPORTING_GOODS","tested_point":"REVERSAL_SOLD_AND_REMAINING_UNITS","difficulty":"ADVANCED","estimated_time_s":360,"lesson_id":"LS.IAS2.000009","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000009","section_id":"how"},"references":["IAS 2 §33","IAS 2 §34"],"exercise":{"prompt":{"fr":"","en":"Analyse how Altivo's ski helmets develop between the end of N and the end of N+1.","es":""},"explanation":{"fr":"","en":"Units sold leave with their carrying amount (IAS 2, para. 34); for the remaining units, net realisable value is reassessed and the reversal is capped at cost (IAS 2, para. 33).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Altivo (a fictitious entity) distributes mountain equipment. At the end of N, it held 2,000 ski helmets of a certified model at a unit cost of EUR 45. A snowless winter had caused prices to fall: net realisable value EUR 39 per unit, hence a write-down tracked in a contra account. In N+1, 1,200 helmets are sold. At the end of N+1, a new regulation makes compulsory the certification this model already holds; prices observed among distributors rise markedly.","es":""},"exhibits":[{"title":{"fr":"","en":"Figures","es":""},"body":{"fr":"","en":"End of N: 2,000 helmets, unit cost EUR 45, net realisable value EUR 39. Sales in N+1: 1,200 helmets. End of N+1: 800 helmets held, estimated net realisable value EUR 47 per unit. Accounting presentation used: the write-down on the units sold leaves with them.","es":""}}],"parts":[{"prompt":{"fr":"","en":"Calculate the amounts relating to the sales in N+1.","es":""},"explanation":{"fr":"","en":"On sale, the carrying amount is expensed (IAS 2, para. 34): 1,200 × 39 = 46,800. 800 helmets remain: cost 36,000, remaining write-down 800 × 6 = 4,800, carrying amount 31,200.","es":""},"common_error":{"fr":"","en":"Releasing the helmets sold at original cost: it is their written-down carrying amount (39) that goes to cost of sales.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Helmets sold in N+1","es":""},"value":"1200","unit":"UNITS"},{"label":{"fr":"","en":"Unit carrying amount at the end of N","es":""},"value":"39","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Carrying amount of helmets sold (to cost of sales)","es":""},"answer":46800,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Carrying amount of the 800 remaining helmets before reassessment","es":""},"answer":31200,"tolerance":0,"unit":"EUR"}],"id":"P1","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Carrying amount of helmets sold (to cost of sales)","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Helmets sold in N+1","es":""},"value":1200,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Unit carrying amount at the end of N","es":""},"value":39,"unit":"EUR"}],"result":46800,"unit":"EUR"}],"rationale":{"fr":"","en":"On sale, the carrying amount is expensed (IAS 2, para. 34): 1,200 × 39 = 46,800.","es":""},"references":["REF.IAS2.34"]}},{"prompt":{"fr":"","en":"Calculate the new carrying amount and the reversal at the end of N+1.","es":""},"explanation":{"fr":"","en":"Revised net realisable value 800 × 47 = 37,600, above the cost of 36,000: new carrying amount = cost, 36,000. Reversal = 36,000 − 31,200 = 4,800, i.e. the whole remaining write-down, not 800 × (47 − 39) = 6,400 (IAS 2, para. 33).","es":""},"common_error":{"fr":"","en":"Computing the reversal on the NRV increase (6,400): it is limited to the remaining write-down, carrying amount not exceeding cost.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Helmets held","es":""},"value":"800","unit":"UNITS"},{"label":{"fr":"","en":"Revised unit net realisable value","es":""},"value":"47","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"New carrying amount","es":""},"answer":36000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Reversal of the write-down","es":""},"answer":4800,"tolerance":0,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION"},{"prompt":{"fr":"","en":"Which analysis correctly supports the reversal?","es":""},"explanation":{"fr":"","en":"The reversal rests on a change in economic circumstances that clearly evidences the increase in the net realisable value of items still held (IAS 2, para. 33).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The regulatory change, confirmed by observed prices, clearly evidences an increase in the net realisable value of the helmets still held.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"An inventory write-down is automatically reversed after one year.","es":""},"correct":false,"feedback":{"fr":"","en":"No reversal is automatic: it requires the circumstances of the write-down to have disappeared or a clearly evidenced increase (IAS 2, para. 33).","es":""}},{"id":"C","text":{"fr":"","en":"The reversal must cover the whole write-down of N (EUR 12,000), since the model is profitable again.","es":""},"correct":false,"feedback":{"fr":"","en":"The write-down on the 1,200 helmets sold left with them; only the remaining write-down (EUR 4,800) can be reversed.","es":""}}],"id":"P3","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"True or false? The reversal of EUR 4,800 is a reduction in the amount of inventories recognised as an expense in N+1.","es":""},"explanation":{"fr":"","en":"True. The reversal of a write-down arising from an increase in net realisable value reduces the amount of inventories recognised as an expense in the period in which it occurs (IAS 2, para. 34).","es":""},"common_error":{"fr":"","en":"Recording the reversal as separate income or in equity: it reduces the amount of inventory recognised as an expense in the period.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P4","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000094","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.NRV.REVERSAL"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"ENERGY","tested_point":"REVERSAL_TRIGGER","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS2.000009","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000009","section_id":"reassessment-rule"},"references":["IAS 2 §33"],"exercise":{"prompt":{"fr":"","en":"A heating oil distributor wrote down its inventories at the end of N after a fall in market prices. Which of the following situations, at the end of N+1, justifies a reversal of the write-down?","es":""},"explanation":{"fr":"","en":"The write-down is reversed when the circumstances that justified it no longer exist or when an increase in net realisable value is clearly evidenced because of a change in economic circumstances, for items still held (IAS 2, para. 33).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Heating oil prices have recovered durably and the oil bought in N, still in the tanks, now sells at a price above its written-down amount.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"All the oil written down in N was sold in the first quarter of N+1.","es":""},"correct":false,"feedback":{"fr":"","en":"The units sold left inventory with their carrying amount: there is no longer any item held on which a write-down could be reversed (IAS 2, para. 33).","es":""}},{"id":"C","text":{"fr":"","en":"The N+2 budget forecasts a recovery in prices, with no increase observed at the end of N+1.","es":""},"correct":false,"feedback":{"fr":"","en":"A forecast not observed at the reporting date does not clearly evidence an increase in net realisable value (IAS 2, para. 33).","es":""}},{"id":"D","text":{"fr":"","en":"Management wishes to improve the gross margin for N+1.","es":""},"correct":false,"feedback":{"fr":"","en":"A profit target is not an economic circumstance: a reversal depends solely on the reassessed net realisable value (IAS 2, para. 33).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000095","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.NRV.REVERSAL"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"WRITE_DOWN_NOT_FINAL","difficulty":"INTERMEDIATE","estimated_time_s":45,"lesson_id":"LS.IAS2.000009","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000009","section_id":"understand"},"references":["IAS 2 §33"],"exercise":{"prompt":{"fr":"","en":"True or false? An inventory write-down recognised in N is final: even if the net realisable value of an item still held rises in N+1, the item remains measured at its written-down amount until it is sold.","es":""},"explanation":{"fr":"","en":"False. Net realisable value is reassessed every period; when its increase is clearly evidenced or the circumstances of the write-down no longer exist, the write-down is reversed up to its original amount (IAS 2, para. 33).","es":""},"common_error":{"fr":"","en":"Believing that a recognised write-down can no longer be changed and waiting for the sale to deal with it, instead of reassessing net realisable value at each reporting date.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000096","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.EXPENSE_RECOGNITION.RULES","IAS2.DISCLOSURE.REQUIREMENTS"],"dimension":"CALCULATION","format":"CALCULATION","context":"MANUFACTURING","tested_point":"COST_OF_SALES_COMPONENTS","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS2.000010","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000010","section_id":"cost-of-sales-content"},"references":["IAS 2 §34","IAS 2 §38"],"exercise":{"prompt":{"fr":"","en":"Case data: Cartonnerie Belvèze manufactures packaging. For year N: opening finished goods EUR 85,000; production for the year measured at cost (fixed overheads allocated on the basis of normal capacity) EUR 640,000; closing inventory at cost EUR 95,000. A drop in activity left EUR 30,000 of fixed production overheads unallocated to inventories, and a set-up fault caused abnormal cardboard waste of EUR 8,000, expensed directly. No write-downs. Calculate.","es":""},"explanation":{"fr":"","en":"Cost of goods sold = 85,000 + 640,000 − 95,000 = 630,000: their carrying amount is expensed together with the sales revenue (IAS 2, para. 34). Cost of sales also includes unallocated production overheads and abnormal amounts of production costs: 630,000 + 30,000 + 8,000 = 668,000 (IAS 2, para. 38).","es":""},"common_error":{"fr":"","en":"Stopping at cost of goods sold (630,000) and forgetting the costs that were never included in inventory but are part of cost of sales.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Opening finished goods","es":""},"value":"85000","unit":"EUR"},{"label":{"fr":"","en":"Production for the year at cost","es":""},"value":"640000","unit":"EUR"},{"label":{"fr":"","en":"Closing inventory at cost","es":""},"value":"95000","unit":"EUR"},{"label":{"fr":"","en":"Unallocated fixed production overheads","es":""},"value":"30000","unit":"EUR"},{"label":{"fr":"","en":"Abnormal waste","es":""},"value":"8000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Cost of goods sold","es":""},"answer":630000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Cost of sales (amount of inventories recognised as an expense)","es":""},"answer":668000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Cost of goods sold","es":""},"expression":"a + b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Opening finished goods","es":""},"value":85000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Production for the year at cost","es":""},"value":640000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Closing inventory at cost","es":""},"value":95000,"unit":"EUR"}],"result":630000,"unit":"EUR","rationale":{"fr":"","en":"Cost of goods sold = 85,000 + 640,000 − 95,000 = 630,000: their carrying amount is expensed together with the sales revenue (IAS 2, para. 34).","es":""}},{"step":"S2","meaning":{"fr":"","en":"Cost of sales (amount of inventories recognised as an expense)","es":""},"expression":"a + b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of goods sold","es":""},"value":630000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Unallocated fixed production overheads","es":""},"value":30000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Abnormal waste","es":""},"value":8000,"unit":"EUR"}],"result":668000,"unit":"EUR","rationale":{"fr":"","en":"Cost of sales also includes unallocated production overheads and abnormal amounts of production costs: 630,000 + 30,000 + 8,000 = 668,000 (IAS 2, para. 38).","es":""}}],"references":["REF.IAS2.34","REF.IAS2.38"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000097","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.EXPENSE_RECOGNITION.RULES"],"dimension":"CALCULATION","format":"CALCULATION","context":"RETAIL","tested_point":"AMOUNT_EXPENSED_WITH_LOSSES_AND_REVERSALS","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS2.000010","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000010","section_id":"expense-rules"},"references":["IAS 2 §34","IAS 2 §36"],"exercise":{"prompt":{"fr":"","en":"Case data: the eyewear chain Solvane keeps a perpetual inventory of its frames. Year N: opening inventory EUR 120,000; purchases EUR 900,000; book closing inventory per the perpetual records EUR 146,000; physical count valued at cost EUR 140,000 (the difference is due to theft). Write-down to net realisable value recognised in N on outdated collections: EUR 4,000; reversal in N of an earlier write-down on a collection still held that is in demand again: EUR 1,000. Reading used in the course (IAS 2, para. 34): the amount of inventories recognised as an expense includes write-downs and is reduced by reversals. Calculate.","es":""},"explanation":{"fr":"","en":"Loss = 146,000 − 140,000 = 6,000: an inventory loss is an expense of the period in which it occurs (IAS 2, para. 34). Outflows at cost = 120,000 + 900,000 − 140,000 = 880,000 (874,000 sold + 6,000 lost). Under the reading used: 880,000 + 4,000 write-down − 1,000 reversal, which reduces the expense of the period (IAS 2, para. 34) = 883,000. The amounts of 4,000 and 1,000 are also disclosed separately in the notes, with the circumstances of the reversal (IAS 2, para. 36).","es":""},"common_error":{"fr":"","en":"Adding the reversal of 1,000 to the expense instead of deducting it, or leaving the 6,000 of theft on the balance sheet pending a possible recovery.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Opening inventory","es":""},"value":"120000","unit":"EUR"},{"label":{"fr":"","en":"Purchases","es":""},"value":"900000","unit":"EUR"},{"label":{"fr":"","en":"Book closing inventory","es":""},"value":"146000","unit":"EUR"},{"label":{"fr":"","en":"Physical closing inventory at cost","es":""},"value":"140000","unit":"EUR"},{"label":{"fr":"","en":"Write-down in N","es":""},"value":"4000","unit":"EUR"},{"label":{"fr":"","en":"Reversal in N","es":""},"value":"1000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Inventory loss (theft)","es":""},"answer":6000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Outflows at cost (goods sold and lost)","es":""},"answer":880000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Total amount of inventories recognised as an expense in N","es":""},"answer":883000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Inventory loss (theft)","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Book closing inventory","es":""},"value":146000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Physical closing inventory at cost","es":""},"value":140000,"unit":"EUR"}],"result":6000,"unit":"EUR","rationale":{"fr":"","en":"Loss = 146,000 − 140,000 = 6,000: an inventory loss is an expense of the period in which it occurs (IAS 2, para. 34).","es":""}},{"step":"S2","meaning":{"fr":"","en":"Outflows at cost (goods sold and lost)","es":""},"expression":"a + b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Opening inventory","es":""},"value":120000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Purchases","es":""},"value":900000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Physical closing inventory at cost","es":""},"value":140000,"unit":"EUR"}],"result":880000,"unit":"EUR"}],"references":["REF.IAS2.34","REF.IAS2.36"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000098","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.EXPENSE_RECOGNITION.RULES","IAS2.DISCLOSURE.REQUIREMENTS"],"dimension":"ANALYSIS","format":"CALCULATION","context":"CONSTRUCTION","tested_point":"RECONCILIATION_WITH_TRANSFER","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS2.000010","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000010","section_id":"how"},"references":["IAS 2 §34","IAS 2 §35"],"exercise":{"prompt":{"fr":"","en":"Case data: the building materials merchant Ostral (weighted average cost) is preparing the reconciliation of its inventories for year N. Opening inventory EUR 80,000; purchases EUR 500,000; closing inventory EUR 70,000. Cost of sales recorded as goods were delivered to customers amounts to EUR 486,000. In addition, concrete blocks and joists costing EUR 24,000 were drawn to build the entity's new warehouse (asset under construction). Calculate to reconcile the outflows.","es":""},"explanation":{"fr":"","en":"Outflows = 80,000 + 500,000 − 70,000 = 510,000. They are split between cost of sales (486,000, an expense of N together with sales revenue, IAS 2, para. 34) and the transfer to the warehouse (24,000), allocated to the asset and recognised as an expense over its useful life (IAS 2, para. 35). The reconciliation therefore compares outflows with the sum 'cost of sales + transfer': 486,000 + 24,000 = 510,000, no difference. Comparing 510,000 with cost of sales alone would show a false difference of 24,000.","es":""},"common_error":{"fr":"","en":"Identifying a 'difference' of 24,000 between outflows and cost of sales and expensing it, although it is the transfer to property, plant and equipment.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Opening inventory","es":""},"value":"80000","unit":"EUR"},{"label":{"fr":"","en":"Purchases","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Closing inventory","es":""},"value":"70000","unit":"EUR"},{"label":{"fr":"","en":"Cost of sales recorded","es":""},"value":"486000","unit":"EUR"},{"label":{"fr":"","en":"Transfer to the warehouse under construction","es":""},"value":"24000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Outflows for the period per the cost formula","es":""},"answer":510000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Total of justified destinations (cost of sales + transfer)","es":""},"answer":510000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Unexplained difference","es":""},"answer":0,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Amount of these inventories recognised as an expense in N","es":""},"answer":486000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Outflows for the period per the cost formula","es":""},"expression":"a + b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Opening inventory","es":""},"value":80000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Purchases","es":""},"value":500000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Closing inventory","es":""},"value":70000,"unit":"EUR"}],"result":510000,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Total of justified destinations (cost of sales + transfer)","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of sales recorded","es":""},"value":486000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Transfer to the warehouse under construction","es":""},"value":24000,"unit":"EUR"}],"result":510000,"unit":"EUR"}],"rationale":{"fr":"","en":"They are split between cost of sales (486,000, an expense of N together with sales revenue, IAS 2, para. 34) and the transfer to the warehouse (24,000), allocated to the asset and recognised as an expense over its useful life (IAS 2, para. 35).","es":""},"references":["REF.IAS2.34","REF.IAS2.35"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000099","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.EXPENSE_RECOGNITION.RULES","IAS2.DISCLOSURE.REQUIREMENTS"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"FURNITURE","tested_point":"COST_OF_SALES_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS2.000010","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000010","section_id":"entry"},"references":["IAS 2 §34","IAS 2 §38"],"exercise":{"prompt":{"fr":"","en":"Case data: the furniture maker Tarnelle (perpetual inventory) delivers bookcases in December N whose production cost recorded in inventory is EUR 64,000; the revenue from these sales is recognised in December N. In addition, of EUR 48,000 of fixed production overheads collected during the quarter, EUR 36,000 were allocated to the cost of production on the basis of normal capacity; the balance, due to low production, remains in the collection account. Record the December N entry recognising these two expenses (generic accounts).","es":""},"explanation":{"fr":"","en":"The carrying amount of the bookcases sold is expensed in the period in which the sales revenue is recognised (IAS 2, para. 34): 64,000. Fixed overheads not allocated to inventories (48,000 − 36,000 = 12,000) are part of cost of sales (IAS 2, para. 38); they do not pass through inventory. Total debits = total credits = 76,000.","es":""},"common_error":{"fr":"","en":"Allocating the 12,000 of low-production overheads to work in progress or finished goods, which inflates the cost of inventories.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"COST_OF_SALES","text":{"fr":"","en":"Cost of sales","es":""}},{"id":"COST_OF_SALES_UNALLOCATED","text":{"fr":"","en":"Cost of sales — unallocated fixed overheads (low production)","es":""}},{"id":"FINISHED_GOODS","text":{"fr":"","en":"Finished goods inventory","es":""}},{"id":"FIXED_OVERHEADS","text":{"fr":"","en":"Fixed production overheads (collection account)","es":""}},{"id":"WORK_IN_PROGRESS","text":{"fr":"","en":"Work in progress","es":""}}],"lines":[{"id":"L1","account":"COST_OF_SALES","side":"DEBIT","amount":64000},{"id":"L2","account":"COST_OF_SALES_UNALLOCATED","side":"DEBIT","amount":12000},{"id":"L3","account":"FINISHED_GOODS","side":"CREDIT","amount":64000},{"id":"L4","account":"FIXED_OVERHEADS","side":"CREDIT","amount":12000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000100","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.EXPENSE_RECOGNITION.RULES"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"ENERGY","tested_point":"TRANSFER_TO_PPE_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS2.000010","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000010","section_id":"transfer-to-other-assets"},"references":["IAS 2 §35"],"exercise":{"prompt":{"fr":"","en":"Case data: the heat distributor Hydrélis holds pipes in inventory for resale to installers. In N, it draws pipes costing EUR 18,000 from this inventory to build its own connecting pipeline between two boiler plants, which it will operate for many years; the pipeline is under construction at year-end. Record the drawing of the pipes.","es":""},"explanation":{"fr":"","en":"The pipes are used as a component of self-constructed property, plant and equipment: they are allocated to that asset and will be recognised as an expense over its useful life (IAS 2, para. 35), through depreciation once the pipeline is brought into use. No expense is recognised when they are drawn, neither cost of sales nor immediate depreciation.","es":""},"common_error":{"fr":"","en":"Debiting cost of sales, as if the pipes had been sold.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"PPE_UNDER_CONSTRUCTION","text":{"fr":"","en":"Property, plant and equipment under construction","es":""}},{"id":"INVENTORIES","text":{"fr":"","en":"Merchandise inventory","es":""}},{"id":"COST_OF_SALES","text":{"fr":"","en":"Cost of sales","es":""}},{"id":"DEPRECIATION_EXPENSE","text":{"fr":"","en":"Depreciation expense","es":""}}],"lines":[{"id":"L1","account":"PPE_UNDER_CONSTRUCTION","side":"DEBIT","amount":18000},{"id":"L2","account":"INVENTORIES","side":"CREDIT","amount":18000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000101","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.DISCLOSURE.REQUIREMENTS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"CHEMICALS","tested_point":"DISCLOSURE_ITEMS","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS2.000010","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000010","section_id":"disclosures"},"references":["IAS 2 §36"],"exercise":{"prompt":{"fr":"","en":"Here are extracts from the 'Inventories' note of a chemicals group. Link each extract to the item of para. 36 of IAS 2 that it satisfies.","es":""},"explanation":{"fr":"","en":"Para. 36 of IAS 2 requires policies and cost formula (a), total carrying amount and by classification (b), the amount of inventories at fair value less costs to sell (c), the amount expensed (d), write-downs (e), reversals (f), their circumstances (g) and inventories pledged as security (h) (IAS 2, para. 36).","es":""},"common_error":{"fr":"","en":"Linking an extract to the wrong item, for example the amount expensed to write-downs: each para. 36 disclosure has its own item.","es":""},"format":"CLASSIFICATION","categories":[{"id":"POLICIES","text":{"fr":"","en":"(a) Policies and cost formula","es":""}},{"id":"CARRYING_BY_CLASS","text":{"fr":"","en":"(b) Total carrying amount and by classification","es":""}},{"id":"FAIR_VALUE","text":{"fr":"","en":"(c) Inventories at fair value less costs to sell","es":""}},{"id":"EXPENSED","text":{"fr":"","en":"(d) Amount recognised as an expense","es":""}},{"id":"WRITE_DOWNS_REVERSALS","text":{"fr":"","en":"(e) and (f) Write-downs and reversals","es":""}},{"id":"CIRCUMSTANCES","text":{"fr":"","en":"(g) Circumstances of reversals","es":""}},{"id":"PLEDGED","text":{"fr":"","en":"(h) Inventories pledged as security","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"'Inventories are measured at the lower of cost and net realisable value; cost is determined using the weighted average cost formula.'","es":""},"category":"POLICIES"},{"id":"I2","text":{"fr":"","en":"'Raw materials 1,200,000; work in progress 350,000; finished goods 2,300,000.'","es":""},"category":"CARRYING_BY_CLASS"},{"id":"I3","text":{"fr":"","en":"'Metal inventories of the trading activity, measured at fair value less costs to sell, amount to 400,000.'","es":""},"category":"FAIR_VALUE"},{"id":"I4","text":{"fr":"","en":"'The cost of inventories recognised as an expense during the year amounts to 9,800,000.'","es":""},"category":"EXPENSED"},{"id":"I5","text":{"fr":"","en":"'Write-downs for the year 85,000; reversals for the year 20,000.'","es":""},"category":"WRITE_DOWNS_REVERSALS"},{"id":"I6","text":{"fr":"","en":"'The reversal results from the recovery in the selling price of solvents after an export market reopened.'","es":""},"category":"CIRCUMSTANCES"},{"id":"I7","text":{"fr":"","en":"'Finished goods with a carrying amount of 600,000 are pledged in favour of a bank syndicate.'","es":""},"category":"PLEDGED"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000102","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.EXPENSE_RECOGNITION.RULES","IAS2.DISCLOSURE.REQUIREMENTS"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"FOOD","tested_point":"COST_OF_SALES_CONTENT","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS2.000010","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000010","section_id":"cost-of-sales-content"},"references":["IAS 2 §38","IAS 2 §35","IAS 2 §18"],"exercise":{"prompt":{"fr":"","en":"A dairy is determining the amount of its inventories recognised as an expense (cost of sales) for the year. Which items can form part of it?","es":""},"explanation":{"fr":"","en":"The amount of inventories recognised as an expense comprises the costs of inventories sold, unallocated production overheads and abnormal production costs, and may include, depending on the entity's circumstances, other amounts such as distribution costs (IAS 2, para. 38).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The production cost of the yoghurts sold, previously included in inventory.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Fixed production overheads not allocated to inventories because a line was shut down for a long period.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The abnormal cost of a batch of milk destroyed after a refrigeration failure.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Depending on the entity's circumstances, distribution costs.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The cost of packaging materials drawn from inventory to build a new packing line in the factory.","es":""},"correct":false,"feedback":{"fr":"","en":"These inventories are allocated to self-constructed property, plant and equipment and become an expense over its useful life (IAS 2, para. 35).","es":""}},{"id":"F","text":{"fr":"","en":"The financing element of a purchase of milk powder on deferred settlement terms.","es":""},"correct":false,"feedback":{"fr":"","en":"The financing element of a purchase on deferred settlement terms is recognised as interest expense over the period of the financing (IAS 2, para. 18); as a consequence, it is not part of cost of sales.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000103","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.DISCLOSURE.REQUIREMENTS"],"dimension":"DOCUMENTATION","format":"ERROR_SPOT","context":"TEXTILE","tested_point":"DISCLOSURE_OMISSIONS","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS2.000010","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000010","section_id":"disclosures"},"references":["IAS 2 §36","IAS 2 §37"],"exercise":{"prompt":{"fr":"","en":"Here is the draft 'Inventories' note of a household linen manufacturer, which holds yarn, fabrics in production and finished goods. Spot the insufficient or incorrect statements.","es":""},"explanation":{"fr":"","en":"The note must present the breakdown by classification (IAS 2, paras. 36, 37) and, for any reversal, its circumstances (IAS 2, para. 36). The statements on policies, the amount expensed and inventories pledged are correct.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"'Inventories are measured at the lower of cost and net realisable value; cost is determined using the FIFO formula.'","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"'Inventories: EUR 2,450,000.' (single amount, no further detail)","es":""},"erroneous":true,"correction":{"fr":"","en":"The total carrying amount must be broken down into classifications appropriate to the entity, here for example materials (yarn), work in progress and finished goods (IAS 2, paras. 36, 37).","es":""}},{"id":"S3","text":{"fr":"","en":"'Amount of inventories recognised as an expense during the year: EUR 7,900,000.'","es":""},"erroneous":false},{"id":"S4","text":{"fr":"","en":"'Write-downs for the year: EUR 52,000. Reversals of write-downs for the year: EUR 38,000.' (no further explanation)","es":""},"erroneous":true,"correction":{"fr":"","en":"The circumstances or events that led to the reversal of EUR 38,000 must also be described, for example the price recovery of a collection still held (IAS 2, para. 36).","es":""}},{"id":"S5","text":{"fr":"","en":"'Finished goods with a carrying amount of EUR 300,000 are pledged as security for a credit line.'","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000104","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.EXPENSE_RECOGNITION.RULES","IAS2.DISCLOSURE.REQUIREMENTS"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"AUTOMOTIVE","tested_point":"EXPENSE_RECOGNITION_ERRORS","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS2.000010","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000010","section_id":"pitfalls"},"references":["IAS 2 §34","IAS 2 §35","IAS 2 §38"],"exercise":{"prompt":{"fr":"","en":"During the year-end review of an automotive supplier, Mécanor, the chief accountant presents the following treatments. Spot those that are incorrect.","es":""},"explanation":{"fr":"","en":"Sale: expense with the revenue; loss: expense of the period in which it occurs (IAS 2, para. 34); inventory built into self-constructed property, plant and equipment: expense over its useful life (IAS 2, para. 35); unallocated fixed overheads: in cost of sales (IAS 2, para. 38).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"Parts costing EUR 35,000, drawn from inventory to build a press for our own workshop, were charged to cost of sales.","es":""},"erroneous":true,"correction":{"fr":"","en":"These parts are allocated to the self-constructed asset (press under construction) and become an expense over its useful life (IAS 2, para. 35).","es":""}},{"id":"S2","text":{"fr":"","en":"Components delivered to carmakers were charged to cost of sales in the period in which the related revenue was recognised.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"A loss of EUR 4,000 of stolen parts, identified at the December stock count, was left in inventory until the following year, pending the insurer's response.","es":""},"erroneous":true,"correction":{"fr":"","en":"An inventory loss is an expense of the period in which it occurs (IAS 2, para. 34); the treatment of any compensation from the insurer is a separate analysis, not covered in this lesson, and does not justify keeping in inventory parts that no longer exist.","es":""}},{"id":"S4","text":{"fr":"","en":"Fixed production overheads not allocated to inventories because of low production are included in cost of sales for the year.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000105","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.DISCLOSURE.REQUIREMENTS","IAS2.EXPENSE_RECOGNITION.RULES"],"dimension":"DOCUMENTATION","format":"MINI_CASE","context":"MANUFACTURING","tested_point":"INVENTORY_NOTE_PREPARATION","difficulty":"EXPERT","estimated_time_s":480,"lesson_id":"LS.IAS2.000010","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000010","section_id":"numeric-example"},"references":["IAS 2 §33","IAS 2 §34","IAS 2 §36","IAS 2 §37","IAS 2 §38"],"exercise":{"prompt":{"fr":"","en":"Prepare the elements of the 'Inventories' note of Verrerie Altamonte for year N.","es":""},"explanation":{"fr":"","en":"The note brings together policies, carrying amounts by classification, the amount expensed, write-downs, reversals and their circumstances, and inventories pledged (IAS 2, para. 36); the amounts reconcile with the contra account and cost of sales (IAS 2, paras. 34, 38).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Verrerie Altamonte (a fictitious entity) manufactures glass tableware. Its inventories are measured at the lower of cost and net realisable value, using the weighted average cost formula (case data). Write-downs are tracked in a contra account. Reading used in the course (IAS 2, para. 34): write-downs and reversals are included in the amount of inventories recognised as an expense, and their amounts are also disclosed separately. The income statement line on which write-downs appear is a presentation choice of the entity.","es":""},"exhibits":[{"title":{"fr":"","en":"Inventories at 31 December N","es":""},"body":{"fr":"","en":"| Classification | Cost | Write-down |\n| --- | --- | --- |\n| Materials (sand, soda ash, cullet) | 48,000 | 0 |\n| Work in progress | 36,000 | 2,000 |\n| Finished goods | 210,000 | 9,000 |\n\nFinished goods pledged as security for a loan: carrying amount 80,000.","es":""}},{"title":{"fr":"","en":"Movements in year N","es":""},"body":{"fr":"","en":"Cost of goods sold: 640,000. Unallocated fixed production overheads (furnace shut down for relining): 25,000. Abnormal breakage during a handling incident: 4,000. Opening write-down: 4,000 (finished goods, 'Ondine' range). Reversal for the year: 1,500 on the 'Ondine' range, still held, whose selling price recovered after a competitor withdrew. New write-downs for the year: 8,500. None of the units written down at the start of the year was sold in N.","es":""}}],"parts":[{"prompt":{"fr":"","en":"Calculate the carrying amounts to be presented (item (b) of para. 36).","es":""},"explanation":{"fr":"","en":"Work in progress 36,000 − 2,000 = 34,000; finished goods 210,000 − 9,000 = 201,000; materials 48,000; total 283,000 (294,000 − 11,000), broken down into classifications appropriate to the entity (IAS 2, paras. 36, 37).","es":""},"common_error":{"fr":"","en":"Presenting categories at cost without deducting their write-down: carrying amount by category is net of write-downs.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Total cost of inventories","es":""},"value":"294000","unit":"EUR"},{"label":{"fr":"","en":"Total write-down at year-end","es":""},"value":"11000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Carrying amount of work in progress","es":""},"answer":34000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Carrying amount of finished goods","es":""},"answer":201000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Total carrying amount of inventories","es":""},"answer":283000,"tolerance":0,"unit":"EUR"}],"id":"P1","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Carrying amount of work in progress","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Work in progress · Cost","es":""},"value":36000},{"symbol":"b","meaning":{"fr":"","en":"Work in progress · Write-down","es":""},"value":2000}],"result":34000,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Carrying amount of finished goods","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Finished goods · Cost","es":""},"value":210000},{"symbol":"b","meaning":{"fr":"","en":"Finished goods · Write-down","es":""},"value":9000}],"result":201000,"unit":"EUR"},{"step":"S3","meaning":{"fr":"","en":"Total carrying amount of inventories","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Total cost of inventories","es":""},"value":294000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Total write-down at year-end","es":""},"value":11000,"unit":"EUR"}],"result":283000,"unit":"EUR","rationale":{"fr":"","en":"total 283,000 (294,000 − 11,000), broken down into classifications appropriate to the entity (IAS 2, paras. 36, 37).","es":""}}],"references":["REF.IAS2.36","REF.IAS2.37"]}},{"prompt":{"fr":"","en":"Calculate the amounts for items (d), (e) and (f), under the reading used in the course.","es":""},"explanation":{"fr":"","en":"Cost of sales = 640,000 + 25,000 + 4,000 = 669,000 (IAS 2, para. 38). Write-downs 8,500 and reversal 1,500: the reversal reduces the expense (IAS 2, para. 34). Under the reading used: 669,000 + 8,500 − 1,500 = 676,000. Check of the contra account: 4,000 − 1,500 + 8,500 = 11,000, equal to the closing write-down.","es":""},"common_error":{"fr":"","en":"Adding the reversal instead of deducting it, or omitting unallocated overheads and abnormal breakage from cost of sales.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Cost of goods sold","es":""},"value":"640000","unit":"EUR"},{"label":{"fr":"","en":"Unallocated fixed overheads","es":""},"value":"25000","unit":"EUR"},{"label":{"fr":"","en":"Abnormal breakage","es":""},"value":"4000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Cost of sales (para. 38)","es":""},"answer":669000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"(e) Write-downs for the year","es":""},"answer":8500,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"(f) Reversals for the year","es":""},"answer":1500,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"(d) Total amount of inventories recognised as an expense","es":""},"answer":676000,"tolerance":0,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Cost of sales (para. 38)","es":""},"expression":"a + b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of goods sold","es":""},"value":640000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Unallocated fixed overheads","es":""},"value":25000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Abnormal breakage","es":""},"value":4000,"unit":"EUR"}],"result":669000,"unit":"EUR"},{"step":"S4","meaning":{"fr":"","en":"(d) Total amount of inventories recognised as an expense","es":""},"expression":"a + b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of sales (para. 38)","es":""},"value":669000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"(e) Write-downs for the year","es":""},"value":8500,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"(f) Reversals for the year","es":""},"value":1500,"unit":"EUR"}],"result":676000,"unit":"EUR"}],"rationale":{"fr":"","en":"Write-downs 8,500 and reversal 1,500: the reversal reduces the expense (IAS 2, para. 34).","es":""},"references":["REF.IAS2.34","REF.IAS2.38"]}},{"prompt":{"fr":"","en":"Which statements must the note include?","es":""},"explanation":{"fr":"","en":"Policies and formula (a), inventories pledged (h) and circumstances of the reversal (g) are required (IAS 2, para. 36).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The measurement policy and the weighted average cost formula.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The carrying amount of finished goods pledged as security (80,000).","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The withdrawal of a competitor as the cause of the reversal of 1,500 on the 'Ondine' range.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The fair value of all tableware inventories at year-end.","es":""},"correct":false,"feedback":{"fr":"","en":"Only inventories actually carried at fair value less costs to sell give rise to that disclosure; there are none here (IAS 2, para. 36).","es":""}}],"id":"P3","dimension":"DOCUMENTATION"},{"prompt":{"fr":"","en":"The controller proposes to present the reversal of 1,500 in 'other income' and not to explain it, 'given its small amount'. What do you answer?","es":""},"explanation":{"fr":"","en":"Treatment: as a reduction in the inventory expense (IAS 2, para. 34). Disclosure: amount of the reversal and the circumstances that caused it (IAS 2, para. 36). Assessing whether information is material remains a judgement, but here the circumstance is simple to describe.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The reversal reduces the amount of inventories recognised as an expense, and both its amount and its circumstances are to be disclosed in the note.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The proposal is acceptable: a reversal is income like any other.","es":""},"correct":false,"feedback":{"fr":"","en":"The reversal reduces the amount of inventories recognised as an expense (IAS 2, para. 34) and its circumstances are to be described (IAS 2, para. 36).","es":""}},{"id":"C","text":{"fr":"","en":"The reversal must be cancelled, because an inventory write-down can never be reversed.","es":""},"correct":false,"feedback":{"fr":"","en":"A reversal is required when the net realisable value of an item still held rises because of a change in economic circumstances (IAS 2, para. 33).","es":""}}],"id":"P4","dimension":"ANALYSIS"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000106","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.DISCLOSURE.REQUIREMENTS"],"dimension":"DOCUMENTATION","format":"TRUE_FALSE","context":"WHOLESALE","tested_point":"PLEDGED_INVENTORIES_DISCLOSURE","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS2.000010","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000010","section_id":"disclosures"},"references":["IAS 2 §36"],"exercise":{"prompt":{"fr":"","en":"Case data: a wholesaler has pledged inventories with a carrying amount of 400,000 to its bank as security for a loan. The draft note merely states: \"Part of the inventories is pledged as security for a bank loan.\" True or false: this statement, with no amount, meets the requirements of IAS 2.","es":""},"explanation":{"fr":"","en":"False. IAS 2 requires disclosure of the carrying amount of inventories pledged as security for liabilities (IAS 2, para. 36): the note must state the amount of 400,000, not merely the existence of the pledge.","es":""},"common_error":{"fr":"","en":"Settling for a qualitative mention of the pledge, when it is the carrying amount of the inventories concerned that is required.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000107","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.CONVERSION"],"dimension":"APPLICATION","format":"FILL_BLANK","context":"MANUFACTURING","tested_point":"LOW_PRODUCTION_UNALLOCATED_OVERHEADS","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS2.000004","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000004","section_id":"low-and-high-production"},"references":["IAS 2 §13"],"exercise":{"prompt":{"fr":"","en":"Complete the calculation.","es":""},"explanation":{"fr":"","en":"Fixed overheads are allocated on the basis of normal capacity; in a period of low production, the amount per unit is not increased and unallocated overheads are expensed (IAS 2, para. 13). Rate = 480,000 ÷ 160,000 = 3; included = 120,000 × 3 = 360,000; expensed = 480,000 − 360,000 = 120,000.","es":""},"common_error":{"fr":"","en":"Spreading the 480,000 over the 120,000 bottles produced (4 per bottle), which inflates inventory cost.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Castelune Glassworks (a fictitious entity) incurs 480,000 of fixed production overheads for the year. Its normal capacity is 160,000 bottles; after a prolonged breakdown, it produces only 120,000 (case data). The fixed overhead rate is {{rate}} per bottle; the fixed overheads included in inventories amount to {{allocated}}; the remaining {{unallocated}} are {{treatment}}.","es":""},"blanks":[{"id":"rate","mode":"NUMBER","answer":3,"tolerance":0},{"id":"allocated","mode":"NUMBER","answer":360000,"tolerance":0},{"id":"unallocated","mode":"NUMBER","answer":120000,"tolerance":0},{"id":"treatment","mode":"CHOICE","choices":[{"id":"EXPENSE","text":{"fr":"","en":"recognised as an expense of the period","es":""}},{"id":"INVENTORY","text":{"fr":"","en":"added to the cost of the bottles produced","es":""}}],"answer":"EXPENSE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000108","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.NRV.WRITE_DOWN"],"dimension":"APPLICATION","format":"ORDERING","context":"GENERIC","tested_point":"NRV_TEST_STEPS","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS2.000008","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000008","section_id":"how"},"references":["IAS 2 §6","IAS 2 §29","IAS 2 §30","IAS 2 §34"],"exercise":{"prompt":{"fr":"","en":"Put in order the steps of the inventory write-down test at the reporting date.","es":""},"explanation":{"fr":"","en":"Net realisable value is the estimated selling price less the costs of completion and the costs necessary to make the sale (IAS 2, para. 6), estimated on the most reliable evidence available (IAS 2, para. 30). The comparison is made item by item (IAS 2, para. 29) and the write-down is recognised as an expense in the period in which it occurs (IAS 2, para. 34).","es":""},"common_error":{"fr":"","en":"Comparing cost with the gross selling price, without deducting completion and selling costs, or testing globally instead of item by item.","es":""},"format":"ORDERING","steps":[{"id":"S1","text":{"fr":"","en":"List the items (or groups of similar items) to be tested, with their cost","es":""}},{"id":"S2","text":{"fr":"","en":"Estimate the selling price in the ordinary course of business using the most reliable evidence available","es":""}},{"id":"S3","text":{"fr":"","en":"Deduct the estimated costs of completion and the costs necessary to make the sale to obtain net realisable value","es":""}},{"id":"S4","text":{"fr":"","en":"Compare cost and net realisable value item by item","es":""}},{"id":"S5","text":{"fr":"","en":"Recognise the write-down, equal to the excess of cost over net realisable value, as an expense","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000109","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.DISCLOSURE.REQUIREMENTS"],"dimension":"DOCUMENTATION","format":"MATCHING","context":"MANUFACTURING","tested_point":"DISCLOSURE_ITEMS_MAPPING","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS2.000010","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000010","section_id":"disclosures"},"references":["IAS 2 §36","IAS 2 §37"],"exercise":{"prompt":{"fr":"","en":"A household appliance manufacturer is preparing its 'Inventories' note. Match each fact of the year with the disclosure it feeds.","es":""},"explanation":{"fr":"","en":"IAS 2 requires the accounting policies and cost formula, the total carrying amount and its classification, the amount of write-downs, the amount of reversals with their circumstances, and the carrying amount of inventories pledged as security (IAS 2, para. 36). Common classifications are materials and supplies, work in progress and finished goods (IAS 2, para. 37). The fair value of all inventories is not among these disclosures: only the carrying amount of inventories carried at fair value less costs to sell, if any, is required.","es":""},"common_error":{"fr":"","en":"Believing IAS 2 requires the fair value of all inventories: only the carrying amount of inventories measured at fair value less costs to sell is required.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"The entity determines the cost of its components using weighted average cost","es":""}},{"id":"L2","text":{"fr":"","en":"Inventories at the reporting date: components, appliances being assembled and finished appliances","es":""}},{"id":"L3","text":{"fr":"","en":"Write-down of an oven model that has become obsolete","es":""}},{"id":"L4","text":{"fr":"","en":"Recovery in the selling price of a model written down last year and still held","es":""}},{"id":"L5","text":{"fr":"","en":"Finished appliances pledged to a bank as security for a loan","es":""}}],"right":[{"id":"R1","text":{"fr":"","en":"Accounting policies, including the cost formula used","es":""}},{"id":"R2","text":{"fr":"","en":"Total carrying amount broken down into classifications appropriate to the entity","es":""}},{"id":"R3","text":{"fr":"","en":"Amount of write-downs recognised as an expense","es":""}},{"id":"R4","text":{"fr":"","en":"Amount of the reversal and the circumstances that led to it","es":""}},{"id":"R5","text":{"fr":"","en":"Carrying amount of inventories pledged as security for liabilities","es":""}},{"id":"R6","text":{"fr":"","en":"Fair value of all inventories","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"},{"left":"L3","right":"R3"},{"left":"L4","right":"R4"},{"left":"L5","right":"R5"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000110","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.DISCLOSURE.REQUIREMENTS"],"dimension":"DOCUMENTATION","format":"FILL_BLANK","context":"FOOD","tested_point":"INVENTORY_NOTE_DRAFTING","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS2.000010","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000010","section_id":"disclosures"},"references":["IAS 2 §9","IAS 2 §25","IAS 2 §33","IAS 2 §36","IAS 2 §37"],"exercise":{"prompt":{"fr":"","en":"Complete the draft 'Inventories' note of a cannery that tracks its batches on a first-in, first-out basis (case data).","es":""},"explanation":{"fr":"","en":"Inventories are measured at the lower of cost and net realisable value (IAS 2, para. 9); FIFO is a permitted formula, last-in, first-out is not (IAS 2, para. 25). The note discloses these policies, the carrying amount by classification — materials, work in progress, finished goods (IAS 2, paras. 36 and 37) — and the circumstances of reversals (IAS 2, para. 36). A reversal requires a clearly evidenced increase in the net realisable value of items still held (IAS 2, para. 33): it is never used to smooth profit.","es":""},"common_error":{"fr":"","en":"Choosing LIFO, the higher of cost and NRV or profit smoothing: none is permitted by IAS 2.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"'Inventories are measured at the {{measure}}. Cost is determined using the {{formula}} formula. The carrying amount of inventories is broken down into materials and packaging, work in progress and {{category}}. The reversal of the write-down for the year results from {{reason}}.'","es":""},"blanks":[{"id":"measure","mode":"CHOICE","choices":[{"id":"LOWER","text":{"fr":"","en":"lower of cost and net realisable value","es":""}},{"id":"HIGHER","text":{"fr":"","en":"higher of cost and net realisable value","es":""}},{"id":"FAIR","text":{"fr":"","en":"amount of their fair value at the reporting date","es":""}}],"answer":"LOWER"},{"id":"formula","mode":"CHOICE","choices":[{"id":"FIFO","text":{"fr":"","en":"first-in, first-out (FIFO)","es":""}},{"id":"LIFO","text":{"fr":"","en":"last-in, first-out","es":""}}],"answer":"FIFO"},{"id":"category","mode":"TEXT","accepted":{"fr":["produits finis"],"en":["finished goods"],"es":["productos terminados"]}},{"id":"reason","mode":"CHOICE","choices":[{"id":"PRICE","text":{"fr":"","en":"the recovery in the selling price of a range of canned goods still held","es":""}},{"id":"SMOOTHING","text":{"fr":"","en":"management's wish to smooth profit between two years","es":""}}],"answer":"PRICE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000111","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.NRV.REVERSAL"],"dimension":"APPLICATION","format":"ORDERING","context":"RETAIL","tested_point":"REVERSAL_STEPS","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS2.000009","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000009","section_id":"how"},"references":["IAS 2 §33","IAS 2 §34","IAS 2 §36"],"exercise":{"prompt":{"fr":"","en":"Put in order the steps for dealing with a possible reversal of a write-down at the reporting date.","es":""},"explanation":{"fr":"","en":"Net realisable value is reassessed in each period; the write-down is reversed, up to its original amount, when its circumstances no longer exist or an increase is clearly evidenced, the new carrying amount being the lower of cost and revised net realisable value (IAS 2, para. 33). The reversal reduces the amount of inventories recognised as an expense (IAS 2, para. 34); its amount and circumstances are disclosed (IAS 2, para. 36).","es":""},"common_error":{"fr":"","en":"Reversing the write-down without establishing that the circumstances have gone, or beyond the original write-down.","es":""},"format":"ORDERING","steps":[{"id":"S1","text":{"fr":"","en":"Reassess the net realisable value of written-down items still held","es":""}},{"id":"S2","text":{"fr":"","en":"Check that the circumstances behind the write-down no longer exist or that the increase in net realisable value is clearly evidenced by changed economic circumstances","es":""}},{"id":"S3","text":{"fr":"","en":"Take as the new carrying amount the lower of cost and revised net realisable value, the reversal being limited to the original write-down","es":""}},{"id":"S4","text":{"fr":"","en":"Recognise the reversal as a reduction in the amount of inventories recognised as an expense in the period","es":""}},{"id":"S5","text":{"fr":"","en":"Disclose in the notes the amount of the reversal and the circumstances that led to it","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000112","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.OTHER_AND_EXCLUDED"],"dimension":"RECOGNITION","format":"MATCHING","context":"FOOD","tested_point":"OTHER_COSTS_TREATMENT_MAPPING","difficulty":"BEGINNER","estimated_time_s":90,"lesson_id":"LS.IAS2.000005","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000005","section_id":"how"},"references":["IAS 2","IAS 2 §16","IAS 2 §18"],"exercise":{"prompt":{"fr":"","en":"A chocolate maker analyses its costs for the year (case data). Match each cost with its treatment.","es":""},"explanation":{"fr":"","en":"Costs of designing products for specific customers may be included (IAS 2, para. 15). Abnormal amounts of wasted materials and selling costs are excluded and expensed (IAS 2, para. 16). The financing element of a deferred settlement is interest expense over the period of the financing (IAS 2, para. 18). Borrowing costs are included only in the limited circumstances set out in IAS 23 (IAS 2, para. 17).","es":""},"common_error":{"fr":"","en":"Leaving the extra amount paid for extended credit in the cost of the cocoa.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"Moulds designed for a specific customer's order","es":""}},{"id":"L2","text":{"fr":"","en":"Abnormal quantity of cocoa lost in a cold-room breakdown","es":""}},{"id":"L3","text":{"fr":"","en":"Easter advertising campaign","es":""}},{"id":"L4","text":{"fr":"","en":"Extra amount paid to settle the cocoa in 12 months rather than on normal credit terms","es":""}},{"id":"L5","text":{"fr":"","en":"Interest on the chocolate maker's bank loan","es":""}}],"right":[{"id":"R1","text":{"fr":"","en":"Included in the cost of inventories","es":""}},{"id":"R2","text":{"fr":"","en":"Expense of the period","es":""}},{"id":"R3","text":{"fr":"","en":"Interest expense over the period of the financing","es":""}},{"id":"R4","text":{"fr":"","en":"Included only in the limited circumstances set out in IAS 23","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"},{"left":"L3","right":"R2"},{"left":"L4","right":"R3"},{"left":"L5","right":"R4"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000113","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.COST.MEASUREMENT_TECHNIQUES"],"dimension":"DOCUMENTATION","format":"MULTIPLE_CHOICE","context":"DIY_RETAIL","tested_point":"RETAIL_METHOD_DOCUMENTATION","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IAS2.000006","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000006","section_id":"judgment"},"references":["IAS 2 §21","IAS 2 §22"],"exercise":{"prompt":{"fr":"","en":"A chain of DIY stores measures its inventories using the retail method. Which items are relevant in the file supporting this choice? (several answers)","es":""},"explanation":{"fr":"","en":"The retail method is allowed only if its results approximate cost (IAS 2, para. 21). It suits large numbers of fast-moving items with similar margins, using an appropriate margin percentage, often per department, that takes markdowns into account (IAS 2, para. 22). The file therefore documents these conditions; the periodic comparison with actual cost is a **documentation good practice** adopted here, not a procedure imposed by the standard.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A periodic comparison, on a sample of departments, between the result of the method and actual purchase cost","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The gross margin percentages used for each department and how markdowns are reflected in them","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"An analysis showing that the items are numerous, fast-moving and have similar margins within each department","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A reference to the 10% variance threshold beyond which IAS 2 would prohibit the method","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 2 only requires results that approximate cost and sets no numerical threshold: the approximation is assessed by judgement (IAS 2, para. 21).","es":""}},{"id":"E","text":{"fr":"","en":"The tax authorities' approval of the use of the method","es":""},"correct":false,"feedback":{"fr":"","en":"The IAS 2 criterion is an accounting one: results that approximate cost (IAS 2, para. 21); a tax approval does not demonstrate it.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS2.000114","source":"V2","standard_id":"IAS2","concept_ids":["IAS2.NRV.WRITE_DOWN","IAS2.NRV.SPECIFIC_SITUATIONS"],"dimension":"DOCUMENTATION","format":"MATCHING","context":"TEXTILE","tested_point":"NRV_EVIDENCE_FILE","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS2.000008","review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000008","section_id":"judgment"},"references":["IAS 2 §6","IAS 2 §29","IAS 2 §30","IAS 2 §31","IAS 2 §32"],"exercise":{"prompt":{"fr":"","en":"A clothing manufacturer is assembling the year-end file for its net realisable value test. Match each point of the test with the evidence that supports it.","es":""},"explanation":{"fr":"","en":"Estimates are based on the most reliable evidence available, including events after the reporting date that confirm conditions existing at that date (IAS 2, para. 30). The quantity held for a firm contract is measured on the basis of the contract price (IAS 2, para. 31). Materials are not written down if the finished products will sell at or above cost (IAS 2, para. 32). Net realisable value deducts the estimated costs of completion (IAS 2, para. 6). Grouping is appropriate only for similar or related items that cannot practicably be evaluated separately (IAS 2, para. 29). The precise content of the file is a matter of the entity's **judgement**.","es":""},"common_error":{"fr":"","en":"Grouping items without showing they cannot be measured separately, or ignoring a firm contract price for the quantity it covers.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"Estimated selling price of a seasonal collection","es":""}},{"id":"L2","text":{"fr":"","en":"Quantity of jackets measured at the price of a firm sales contract","es":""}},{"id":"L3","text":{"fr":"","en":"No write-down of fabric whose purchase price has fallen","es":""}},{"id":"L4","text":{"fr":"","en":"Costs still to be incurred to complete garments in progress","es":""}},{"id":"L5","text":{"fr":"","en":"Test performed on a group of items rather than item by item","es":""}}],"right":[{"id":"R1","text":{"fr":"","en":"Prices achieved after the reporting date, to the extent that they confirm conditions existing at the end of the period","es":""}},{"id":"R2","text":{"fr":"","en":"Signed contract: agreed quantities and prices","es":""}},{"id":"R3","text":{"fr":"","en":"Analysis showing that the garments into which the fabric will be incorporated will sell at or above cost","es":""}},{"id":"R4","text":{"fr":"","en":"Documented estimate of the remaining production costs, by item","es":""}},{"id":"R5","text":{"fr":"","en":"Analysis showing that the items belong to the same product line, have similar purposes and cannot practicably be evaluated separately","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"},{"left":"L3","right":"R3"},{"left":"L4","right":"R4"},{"left":"L5","right":"R5"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000001","standard_id":"IAS2","concept_ids":["IAS2.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000001","tested_point":"QST.IAS2.000001","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":30,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000001","section_id":"objective"},"references":["IAS 2"],"exercise":{"prompt":{"fr":"","en":"IAS 2 sets out the accounting treatment of inventories; the key question it addresses is the amount of cost to be kept as an asset until the revenue related to those inventories is recognised.","es":""},"explanation":{"fr":"","en":"The standard organises the accounting for inventories around one central question: what amount of cost is recognised as an asset and carried forward until the related revenue is recognised (IAS 2, para. 1). It then gives guidance on determining that cost, on its recognition as an expense and on the cost formulas.","es":""},"common_error":{"fr":"","en":"Thinking that IAS 2 aims to present inventories at their market value.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000002","standard_id":"IAS2","concept_ids":["IAS2.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000002","tested_point":"QST.IAS2.000002","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":30,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000001","section_id":"objective"},"references":["IAS 2"],"exercise":{"prompt":{"fr":"","en":"IAS 2 deals only with determining the cost of inventories: the subsequent recognition of that cost as an expense, including write-downs to net realisable value, falls under other standards.","es":""},"explanation":{"fr":"","en":"IAS 2 does not stop at determining cost: it also gives guidance on the subsequent recognition of that cost as an expense, including write-downs to net realisable value, and on the cost formulas (IAS 2, para. 1).","es":""},"common_error":{"fr":"","en":"Restricting IAS 2 to the initial measurement of inventories.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000003","standard_id":"IAS2","concept_ids":["IAS2.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000003","tested_point":"QST.IAS2.000003","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":35,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000001","section_id":"objective"},"references":["IAS 2"],"exercise":{"prompt":{"fr":"","en":"The cost formulas used to assign the cost of inventories are not among the topics on which IAS 2 gives guidance.","es":""},"explanation":{"fr":"","en":"The topics covered by the standard expressly include the cost formulas, alongside the determination of cost and its recognition as an expense (IAS 2, para. 1).","es":""},"common_error":{"fr":"","en":"Believing that the choice of a cost formula lies outside IAS 2.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000004","standard_id":"IAS2","concept_ids":["IAS2.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000004","tested_point":"QST.IAS2.000004","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":30,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000001","section_id":"objective"},"references":["IAS 2"],"exercise":{"prompt":{"fr":"","en":"Write-downs of inventories to net realisable value are among the topics on which IAS 2 gives guidance.","es":""},"explanation":{"fr":"","en":"When dealing with the recognition of the cost of inventories as an expense, the standard expressly covers write-downs to net realisable value (IAS 2, para. 1).","es":""},"common_error":{"fr":"","en":"Thinking that inventory write-downs fall under a general standard on asset impairment.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000005","standard_id":"IAS2","concept_ids":["IAS2.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000005","tested_point":"QST.IAS2.000005","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000001","section_id":"objective"},"references":["IAS 2"],"exercise":{"prompt":{"fr":"","en":"According to the objective of IAS 2, what is the primary issue in accounting for inventories?","es":""},"explanation":{"fr":"","en":"The primary issue addressed by the standard is the amount of cost to be recognised as an asset and carried forward until the related revenue is recognised (IAS 2, para. 1). Revenue recognition and taxation are outside its objective.","es":""},"common_error":{"fr":"","en":"Confusing the objective of IAS 2 with that of a revenue standard.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The amount of fair value to be used for inventories at each reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: IAS 2 reasons in terms of cost carried as an asset, not fair value remeasured at each reporting date.","es":""}},{"id":"B","text":{"fr":"","en":"The amount of cost recognised as an asset until the related revenue is recognised.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The point at which revenue from the sale of inventories is recognised in profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: IAS 2 takes the recognition of the related revenue as given; it does not set its timing.","es":""}},{"id":"D","text":{"fr":"","en":"The amount of inventories that will be deductible when determining the taxable profit of the period.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: tax rules are not part of the objective of IAS 2.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000006","standard_id":"IAS2","concept_ids":["IAS2.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000006","tested_point":"QST.IAS2.000006","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000001","section_id":"objective"},"references":["IAS 2"],"exercise":{"prompt":{"fr":"","en":"Which set summarises the topics on which IAS 2 gives guidance?","es":""},"explanation":{"fr":"","en":"The standard gives guidance on three related topics: the determination of the cost of inventories, its subsequent recognition as an expense, including write-downs to net realisable value, and the cost formulas (IAS 2, para. 1).","es":""},"common_error":{"fr":"","en":"Forgetting expense recognition and write-downs.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The determination of cost, the periodic revaluation of inventories to fair value and the timing of recognition of the revenue from their sale.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: IAS 2 provides for no periodic revaluation to fair value and does not set the timing of revenue recognition.","es":""}},{"id":"B","text":{"fr":"","en":"Only the determination of the costs of purchase of inventories, the other aspects being left to the practices of each industry.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the standard goes beyond the costs of purchase; it also deals with expense recognition and cost formulas.","es":""}},{"id":"C","text":{"fr":"","en":"The determination of cost, its subsequent recognition as an expense (including write-downs to net realisable value) and the cost formulas.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The setting of selling prices for products and the commercial margin policy of the entity.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: pricing and margin policy is a management decision, not an IAS 2 topic.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000007","standard_id":"IAS2","concept_ids":["IAS2.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000007","tested_point":"QST.IAS2.000007","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000001","section_id":"objective"},"references":["IAS 2"],"exercise":{"prompt":{"fr":"","en":"A trainee at Ardenval claims that the objective of IAS 2 is to present inventories at their expected selling price. How should this be corrected?","es":""},"explanation":{"fr":"","en":"The objective of IAS 2 is about cost: the amount of cost kept as an asset until the related revenue is recognised, and then its recognition as an expense, including write-downs to net realisable value (IAS 2, para. 1). The expected selling price is not the measurement basis aimed at by the standard.","es":""},"common_error":{"fr":"","en":"Confusing the objective of IAS 2 with a market value measurement.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No correction: IAS 2 requires inventories to be presented at the expected selling price from the date they are received.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the standard reasons in terms of cost, not expected selling price.","es":""}},{"id":"B","text":{"fr":"","en":"IAS 2 uses the amount paid to the supplier, never taking into account any later decrease in value.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the objective of the standard includes write-downs to net realisable value, which reflect a decrease in value.","es":""}},{"id":"C","text":{"fr":"","en":"IAS 2 uses the fair value of inventories at each reporting date, with differences taken to equity.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: IAS 2 provides for no remeasurement to fair value at each reporting date.","es":""}},{"id":"D","text":{"fr":"","en":"IAS 2 deals with the cost carried as an asset until the related revenue is recognised, together with write-downs to net realisable value.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000008","standard_id":"IAS2","concept_ids":["IAS2.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000008","tested_point":"QST.IAS2.000008","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000001","section_id":"objective"},"references":["IAS 2"],"exercise":{"prompt":{"fr":"","en":"According to the objective of IAS 2, until when is the cost of inventories carried as an asset?","es":""},"explanation":{"fr":"","en":"The cost of inventories is recognised as an asset and carried forward until the related revenue is recognised (IAS 2, para. 1). Neither payment of the supplier, nor the reporting date, nor collection from the customer is that reference point.","es":""},"common_error":{"fr":"","en":"Confusing revenue recognition with cash collection.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Until the supplier's invoice is paid.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: paying the supplier has no effect on keeping the cost as an asset.","es":""}},{"id":"B","text":{"fr":"","en":"Until the related revenue is recognised.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Until the end of the reporting period in which the inventories were acquired.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: inventories unsold at the reporting date remain an asset from one period to the next.","es":""}},{"id":"D","text":{"fr":"","en":"Until the selling price is collected from the customer.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the reference point is revenue recognition, not cash collection.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000009","standard_id":"IAS2","concept_ids":["IAS2.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000009","tested_point":"QST.IAS2.000009","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":35,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000001","section_id":"scope-exclusions"},"references":["IAS 2 §2"],"exercise":{"prompt":{"fr":"","en":"Bonds that a manufacturing entity holds for resale are financial instruments: they are excluded from the scope of IAS 2.","es":""},"explanation":{"fr":"","en":"IAS 2 applies to all inventories except, in particular, financial instruments, which fall under IAS 32 and IFRS 9 (IAS 2, para. 2). An intention to resell does not turn a bond into inventory within the meaning of the standard.","es":""},"common_error":{"fr":"","en":"Classifying as inventory any asset held for resale, including securities.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000010","standard_id":"IAS2","concept_ids":["IAS2.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000010","tested_point":"QST.IAS2.000010","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":35,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000001","section_id":"scope-exclusions"},"references":["IAS 2 §2"],"exercise":{"prompt":{"fr":"","en":"The young fir trees a nursery grows for sale as Christmas trees, which are biological assets related to its agricultural activity, are inventories within the scope of IAS 2.","es":""},"explanation":{"fr":"","en":"Biological assets related to agricultural activity, such as growing fir trees, are excluded from the scope of IAS 2 and fall under IAS 41 (IAS 2, para. 2). These fir trees are therefore not inventories within the meaning of the standard, even though they are intended for sale.","es":""},"common_error":{"fr":"","en":"Applying IAS 2 to a biological asset before harvest.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000011","standard_id":"IAS2","concept_ids":["IAS2.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000011","tested_point":"QST.IAS2.000011","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000001","section_id":"scope-exclusions"},"references":["IAS 2 §3","IAS 2 §5"],"exercise":{"prompt":{"fr":"","en":"Ferrocourt, a commodity broker-trader in metals, measures its inventories at fair value less costs to sell. These inventories are entirely excluded from the scope of IAS 2.","es":""},"explanation":{"fr":"","en":"For the inventories of a commodity broker-trader measured at fair value less costs to sell, only the measurement requirements of IAS 2 are set aside; the inventories remain within the scope of the standard (IAS 2, para. 3 and 5). Changes in that value are recognised in profit or loss in the period in which they occur.","es":""},"common_error":{"fr":"","en":"Entirely excluding from IAS 2 the inventories of a broker-trader measured at fair value less costs to sell.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000012","standard_id":"IAS2","concept_ids":["IAS2.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000012","tested_point":"QST.IAS2.000012","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000001","section_id":"scope-exclusions"},"references":["IAS 2 §3","IAS 2"],"exercise":{"prompt":{"fr":"","en":"When a cereal producer measures its stored harvest at net realisable value in accordance with well-established practices in its industry, changes in that value are recognised in profit or loss in the period in which they occur.","es":""},"explanation":{"fr":"","en":"Inventories of agricultural produce after harvest measured at net realisable value in accordance with well-established industry practices are excluded only from the measurement requirements of IAS 2; changes in value are then recognised in profit or loss in the period of the change (IAS 2, para. 3 and 4).","es":""},"common_error":{"fr":"","en":"Recognising these changes in equity or in other comprehensive income.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000013","standard_id":"IAS2","concept_ids":["IAS2.SCOPE.GENERAL","IAS2.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000013","tested_point":"QST.IAS2.000013","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000001","section_id":"scope-exclusions"},"references":["IAS 2 §2","IAS 2"],"exercise":{"prompt":{"fr":"","en":"Which of these assets falls entirely within the scope of IAS 2?","es":""},"explanation":{"fr":"","en":"A manufacturer's finished goods are inventories (IAS 2, para. 8) and no exclusion applies to them. By contrast, shares and receivables are financial instruments, and dairy cows are biological assets related to agricultural activity: they are excluded from the scope of the standard (IAS 2, para. 2).","es":""},"common_error":{"fr":"","en":"Using the intention to resell as the only criterion for applying IAS 2.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Listed shares held by a trading company for resale.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: shares are financial instruments, excluded from the scope of IAS 2 even when held for resale.","es":""}},{"id":"B","text":{"fr":"","en":"A herd of dairy cows belonging to a farm.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: a dairy herd is a biological asset related to agricultural activity, which falls under IAS 41.","es":""}},{"id":"C","text":{"fr":"","en":"Finished goods manufactured by a producer and held for sale.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Trade receivables arising from sales of goods on credit.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: trade receivables are financial instruments, excluded from the scope of IAS 2.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000014","standard_id":"IAS2","concept_ids":["IAS2.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000014","tested_point":"QST.IAS2.000014","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000001","section_id":"scope-exclusions"},"references":["IAS 2 §2"],"exercise":{"prompt":{"fr":"","en":"Pomeraie grows apple trees and sells its apples. Which statement is correct regarding the scope of IAS 2?","es":""},"explanation":{"fr":"","en":"IAS 2 excludes from its scope biological assets related to agricultural activity, such as apple trees, and agricultural produce at the point of harvest, such as picked apples, which falls under IAS 41 (IAS 2, para. 2). These exclusions do not depend on any choice by the entity.","es":""},"common_error":{"fr":"","en":"Applying IAS 2 to a biological asset before harvest.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The apple trees are inventories within IAS 2, since they produce goods held for sale.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: an apple tree is a biological asset related to agricultural activity, excluded from the scope of IAS 2.","es":""}},{"id":"B","text":{"fr":"","en":"The apples, at the point of harvest, fall under IAS 41, not IAS 2.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The apple trees and the apples fall under IAS 2 as long as the entity has not elected to apply IAS 41.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the exclusion is mandatory; it does not result from a choice by the entity.","es":""}},{"id":"D","text":{"fr":"","en":"The apples fall under IAS 32 and IFRS 9, because they will be exchanged for cash.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: apples are physical goods, not financial instruments; at the point of harvest, they fall under IAS 41.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000015","standard_id":"IAS2","concept_ids":["IAS2.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000015","tested_point":"QST.IAS2.000015","difficulty":"BEGINNER","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000001","section_id":"scope-exclusions"},"references":["IAS 2 §2"],"exercise":{"prompt":{"fr":"","en":"Which items are entirely excluded from the scope of IAS 2? (several answers possible)","es":""},"explanation":{"fr":"","en":"Excluded from the scope of IAS 2 are financial instruments, such as government bonds, biological assets related to agricultural activity, such as farmed pigs, and agricultural produce at the point of harvest, such as harvested wheat (IAS 2, para. 2). Raw materials and goods for resale remain inventories subject to the standard.","es":""},"common_error":{"fr":"","en":"Forgetting that agricultural produce at the point of harvest is excluded.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Raw materials held by a furniture manufacturer.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: raw materials for production are inventories subject to IAS 2.","es":""}},{"id":"B","text":{"fr":"","en":"Government bonds held for trading.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Goods held by a wholesaler for resale.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: goods held for resale are inventories subject to IAS 2.","es":""}},{"id":"D","text":{"fr":"","en":"Pigs reared by a farm.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"Wheat at the point of harvest by the farmer who grew it.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000016","standard_id":"IAS2","concept_ids":["IAS2.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000016","tested_point":"QST.IAS2.000016","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000001","section_id":"scope-exclusions"},"references":["IAS 2 §3","IAS 2","IAS 2 §5","IAS 2 §2"],"exercise":{"prompt":{"fr":"","en":"For which inventories are only the measurement requirements of IAS 2 set aside, the inventories remaining within the scope of the standard? (several answers possible)","es":""},"explanation":{"fr":"","en":"The measurement requirements do not apply to inventories of producers of agricultural and forest products and of minerals measured at net realisable value in accordance with well-established industry practices, nor to those of commodity broker-traders measured at fair value less costs to sell (IAS 2, para. 3, 4 and 5). A retailer's goods are subject to the whole standard, whereas share options, being financial instruments, are entirely outside its scope (IAS 2, para. 2).","es":""},"common_error":{"fr":"","en":"Entirely excluding from IAS 2 the inventories of a broker-trader measured at fair value less costs to sell.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The ore of a mining group, measured at net realisable value in accordance with well-established practices in its industry.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The goods of a chain of DIY stores.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: these goods fall entirely under IAS 2, including measurement.","es":""}},{"id":"C","text":{"fr":"","en":"The copper of a commodity broker-trader, measured at fair value less costs to sell.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Share options held by a bank.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: options are financial instruments, entirely excluded from the scope of IAS 2.","es":""}},{"id":"E","text":{"fr":"","en":"The felled timber of a forestry producer, measured at net realisable value in accordance with well-established practices in its industry.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000017","standard_id":"IAS2","concept_ids":["IAS2.SCOPE.GENERAL"],"dimension":"APPLICATION","context":"V1_QST.IAS2.000017","tested_point":"QST.IAS2.000017","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000001","section_id":"scope-exclusions"},"references":["IAS 2 §3","IAS 2 §5"],"exercise":{"prompt":{"fr":"","en":"Cupronor buys and sells copper on its own account. Its purchases aim at resale in the near future to generate a profit from price fluctuations, and it measures its inventories at fair value less costs to sell. At the reporting date, that value has increased by EUR 40,000 since acquisition. Which treatment applies under IAS 2?","es":""},"explanation":{"fr":"","en":"Cupronor fits the description of a commodity broker-trader: inventories acquired principally for resale in the near future and a profit from price fluctuations (IAS 2, para. 5). Its inventories measured at fair value less costs to sell are excluded only from the measurement requirements of the standard, and changes in value are recognised in profit or loss in the period in which they occur (IAS 2, para. 3). Measurement at fair value less costs to sell is a fact of the case.","es":""},"common_error":{"fr":"","en":"Entirely excluding from IAS 2 the inventories of a broker-trader measured at fair value less costs to sell.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The inventories remain within the scope of IAS 2 but are outside its measurement requirements; the EUR 40,000 increase is recognised in profit or loss for the period.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The inventories are entirely outside the scope of IAS 2; the EUR 40,000 increase is taken directly to equity.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the inventories remain within the scope of IAS 2, and the change in value goes to profit or loss, not equity.","es":""}},{"id":"C","text":{"fr":"","en":"The inventories must be measured at the lower of cost and net realisable value; the EUR 40,000 increase is not recognised.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the lower of cost and net realisable value rule does not apply to these inventories.","es":""}},{"id":"D","text":{"fr":"","en":"The inventories are subject to all the requirements of IAS 2, and the EUR 40,000 increase, observed at the reporting date, is recognised in other comprehensive income for the period.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the measurement requirements are set aside, and the change in value is recognised in profit or loss, not in other comprehensive income.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000018","standard_id":"IAS2","concept_ids":["IAS2.SCOPE.GENERAL"],"dimension":"APPLICATION","context":"V1_QST.IAS2.000018","tested_point":"QST.IAS2.000018","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000001","section_id":"scope-exclusions"},"references":["IAS 2 §3","IAS 2"],"exercise":{"prompt":{"fr":"","en":"The Silexmine group extracts zinc ore. Once extracted, the ore's sale is assured under a forward contract, and the group measures it at net realisable value, in accordance with a well-established practice in its industry. How are these inventories treated under IAS 2?","es":""},"explanation":{"fr":"","en":"Inventories of minerals measured at net realisable value in accordance with well-established industry practices, for example when a forward contract assures the sale after extraction, are excluded only from the measurement requirements of IAS 2 (IAS 2, para. 3 and 4). Changes in value are recognised in profit or loss in the period in which they occur. The industry practice and the forward contract are facts of the case.","es":""},"common_error":{"fr":"","en":"Confusing exclusion from the measurement requirements with exclusion from scope.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"They are measured at the lower of cost and net realisable value, like all inventories within the scope of the standard.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: these inventories are outside the measurement requirements, including the lower of cost and net realisable value rule.","es":""}},{"id":"B","text":{"fr":"","en":"They remain within the scope of the standard but are outside its measurement requirements; changes in value go to profit or loss.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"They are entirely excluded from IAS 2, since their sale is guaranteed by a forward contract concluded with a buyer.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the forward contract explains the measurement at net realisable value; it does not take the inventories outside the scope of the standard.","es":""}},{"id":"D","text":{"fr":"","en":"They are outside the measurement requirements, and changes in value are taken directly to equity.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: changes in value are recognised in profit or loss, not in equity.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000019","standard_id":"IAS2","concept_ids":["IAS2.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000019","tested_point":"QST.IAS2.000019","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000001","section_id":"scope-exclusions"},"references":["IAS 2 §5"],"exercise":{"prompt":{"fr":"","en":"Under IAS 2, which feature distinguishes the inventories of a commodity broker-trader?","es":""},"explanation":{"fr":"","en":"Broker-traders buy or sell commodities for others or on their own account; their inventories are acquired principally for resale in the near future and to generate a profit from price fluctuations or a broker-traders' margin (IAS 2, para. 5). What matters is not that the commodity is listed but the activity and the intention.","es":""},"common_error":{"fr":"","en":"Treating any entity holding listed commodities as a broker-trader.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"They are intended to be consumed in the entity's production process.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: materials consumed in production are a manufacturer's inventories, not a broker-trader's.","es":""}},{"id":"B","text":{"fr":"","en":"They are held long-term as an investment, with no intention of resale.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: long-term holding with no intention of resale is contrary to a trading activity.","es":""}},{"id":"C","text":{"fr":"","en":"They are acquired principally for resale in the near future, generating a profit from price fluctuations or a broker-traders' margin.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"They are any listed commodity held by an entity, whatever its activity, the holding period envisaged and the intended use of those commodities.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the mere fact that a commodity is listed does not make its holder a broker-trader.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000020","standard_id":"IAS2","concept_ids":["IAS2.SCOPE.GENERAL","IAS2.DEFINITIONS.KEY_TERMS"],"dimension":"APPLICATION","context":"V1_QST.IAS2.000020","tested_point":"QST.IAS2.000020","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000001","section_id":"scope-exclusions"},"references":["IAS 2 §2","IAS 2"],"exercise":{"prompt":{"fr":"","en":"The Clos-Varenne estate farms its vines, harvests the grapes and turns them into wine, which it sells. Consider three items: the vines, the grapes at the point of harvest and the wine maturing in vats. Which allocation is correct?","es":""},"explanation":{"fr":"","en":"The vines, biological assets related to agricultural activity, and the grapes at the point of harvest, agricultural produce at the point of harvest, are excluded from the scope of IAS 2 (IAS 2, para. 2). The maturing wine is the entity's work in progress, and therefore inventory subject to IAS 2 (IAS 2, para. 8). The agricultural nature of the activity does not exclude processed products.","es":""},"common_error":{"fr":"","en":"Applying IAS 2 to a biological asset before harvest.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"All three items fall under IAS 2, since they all contribute to future sales.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the vines and the grapes at the point of harvest are excluded from the scope of IAS 2.","es":""}},{"id":"B","text":{"fr":"","en":"The vines and the grapes at the point of harvest are excluded from the scope of IAS 2; the maturing wine is work in progress within IAS 2.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The vines are excluded from the scope of IAS 2; the grapes at the point of harvest and the maturing wine fall under IAS 2 as inventories.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: at the point of harvest, the grapes are still excluded from the scope of IAS 2.","es":""}},{"id":"D","text":{"fr":"","en":"None of these items falls under IAS 2, since the estate's main activity is agricultural.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the exclusion targets specific assets, not every agricultural entity; the maturing wine is inventory.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000021","standard_id":"IAS2","concept_ids":["IAS2.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000021","tested_point":"QST.IAS2.000021","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":30,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000002","section_id":"inventories-definition"},"references":["IAS 2 §6"],"exercise":{"prompt":{"fr":"","en":"Raw materials that a bicycle manufacturer holds to be consumed in its production are inventories under IAS 2.","es":""},"explanation":{"fr":"","en":"Inventories cover goods held for sale in the normal course of business, goods being produced for such sale, and materials or supplies that will be used up in production or in providing services (IAS 2, para. 6).","es":""},"common_error":{"fr":"","en":"Restricting inventories to goods intended for resale in their current form.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000022","standard_id":"IAS2","concept_ids":["IAS2.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000022","tested_point":"QST.IAS2.000022","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000002","section_id":"inventories-definition"},"references":["IAS 2 §6"],"exercise":{"prompt":{"fr":"","en":"Tornalis may classify as inventory a hydraulic press it has used in its workshops for several years, on the grounds that the press is used in production.","es":""},"explanation":{"fr":"","en":"Inventories are assets held for sale, in the process of production for sale, or materials and supplies to be consumed in the production process or in the rendering of services (IAS 2, para. 6). A press used over several years is neither sold nor consumed in production: it does not meet this definition.","es":""},"common_error":{"fr":"","en":"Classifying as inventory an item held for long-term use by the entity.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000023","standard_id":"IAS2","concept_ids":["IAS2.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000023","tested_point":"QST.IAS2.000023","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000002","section_id":"inventories-definition"},"references":["IAS 2"],"exercise":{"prompt":{"fr":"","en":"The net realisable value of an inventory item is always equal to its fair value less costs to sell.","es":""},"explanation":{"fr":"","en":"Net realisable value is the net amount that the entity itself expects to realise from the sale of the inventory in the ordinary course of business; it is entity-specific. Fair value reflects the price of an orderly transaction between market participants; it is not entity-specific. The two amounts may therefore differ (IAS 2, para. 7).","es":""},"common_error":{"fr":"","en":"Equating net realisable value with fair value less costs to sell.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000024","standard_id":"IAS2","concept_ids":["IAS2.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000024","tested_point":"QST.IAS2.000024","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":35,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000002","section_id":"inventories-definition"},"references":["IAS 2 §6"],"exercise":{"prompt":{"fr":"","en":"To obtain net realisable value, an entity starts from the selling price it expects in the ordinary course of business and deducts the costs it still expects to incur to complete the item and to sell it.","es":""},"explanation":{"fr":"","en":"This matches the standard's definition: the starting point is the expected selling price in the ordinary course of business, from which the expected costs to complete the item and the expected costs to sell it are deducted (IAS 2, para. 6).","es":""},"common_error":{"fr":"","en":"Forgetting the costs of completion of an item in progress.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000025","standard_id":"IAS2","concept_ids":["IAS2.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000025","tested_point":"QST.IAS2.000025","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":35,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000002","section_id":"inventories-definition"},"references":["IAS 2"],"exercise":{"prompt":{"fr":"","en":"Land that a property developer holds for resale as part of its business is inventory.","es":""},"explanation":{"fr":"","en":"Inventories encompass goods purchased and held for resale, including land and other property held for resale (IAS 2, para. 8). The intention to resell in the course of business is here a fact of the case.","es":""},"common_error":{"fr":"","en":"Excluding real estate from inventories as a matter of principle.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000026","standard_id":"IAS2","concept_ids":["IAS2.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000026","tested_point":"QST.IAS2.000026","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000002","section_id":"inventories-definition"},"references":["IAS 2 §6"],"exercise":{"prompt":{"fr":"","en":"How does IAS 2 define net realisable value?","es":""},"explanation":{"fr":"","en":"Net realisable value starts from the estimated selling price in the ordinary course of business, from which the estimated costs of completion and the estimated costs necessary to make the sale are deducted (IAS 2, para. 6). It is neither a gross market price nor cost plus a margin.","es":""},"common_error":{"fr":"","en":"Equating net realisable value with fair value less costs to sell.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The quoted market price of the inventory between market participants at the reporting date, with no deduction of costs.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: a market price between participants relates to fair value, not net realisable value, and costs are deducted.","es":""}},{"id":"B","text":{"fr":"","en":"The estimated selling price in the ordinary course of business, less the estimated costs of completion and of sale.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The estimated selling price in the ordinary course of business, less only the estimated costs necessary to make the sale.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: this formula forgets the estimated costs of completion.","es":""}},{"id":"D","text":{"fr":"","en":"The costs of purchase of the inventory plus the commercial margin usually applied by the entity.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: net realisable value starts from an estimated selling price, not cost plus a margin.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000027","standard_id":"IAS2","concept_ids":["IAS2.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000027","tested_point":"QST.IAS2.000027","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000002","section_id":"inventories-definition"},"references":["IAS 2 §6","IAS 2"],"exercise":{"prompt":{"fr":"","en":"Distrimax, a distributor of electrical equipment, holds the following assets. Which one is not inventory?","es":""},"explanation":{"fr":"","en":"Goods purchased and held for resale are a distributor's inventories (IAS 2, para. 8). The delivery trucks, used over several periods, are neither held for sale nor consumed in production or in the rendering of services: they do not meet the definition of inventories (IAS 2, para. 6).","es":""},"common_error":{"fr":"","en":"Classifying as inventory an item held for long-term use by the entity.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Cables purchased from manufacturers and held for resale.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: cables held for resale are merchandise, and therefore inventory.","es":""}},{"id":"B","text":{"fr":"","en":"The trucks used to deliver orders to customers.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Circuit breakers received in the warehouse and not yet sold.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: circuit breakers awaiting sale are merchandise in inventory.","es":""}},{"id":"D","text":{"fr":"","en":"Reels of electrical conduit intended to be resold by the metre to installation tradespeople.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: selling by the metre changes nothing; the conduit is held for resale.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000028","standard_id":"IAS2","concept_ids":["IAS2.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000028","tested_point":"QST.IAS2.000028","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000002","section_id":"inventories-definition"},"references":["IAS 2","IAS 2 §6"],"exercise":{"prompt":{"fr":"","en":"Why can the net realisable value of an inventory item differ from its fair value less costs to sell?","es":""},"explanation":{"fr":"","en":"Net realisable value is the net amount that the entity itself expects to realise from the sale in the ordinary course of business; fair value, defined by reference to IFRS 13, reflects the price of an orderly transaction between market participants (IAS 2, para. 6 and 7). The former is entity-specific, the latter is not: they may therefore differ.","es":""},"common_error":{"fr":"","en":"Equating net realisable value with fair value less costs to sell.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Because fair value is entity-specific, whereas net realisable value is a price set by the market.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: it is the reverse, net realisable value is entity-specific.","es":""}},{"id":"B","text":{"fr":"","en":"Because net realisable value is computed on the basis of the historical cost of the inventory, with no reference to a selling price.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: net realisable value starts from an estimated selling price, not historical cost.","es":""}},{"id":"C","text":{"fr":"","en":"Because the former is entity-specific, whereas the latter is based on a price between market participants.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"They cannot differ: IAS 2 treats them as two names for one and the same exit value of the inventory.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: IAS 2 expressly states that the two amounts may differ.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000029","standard_id":"IAS2","concept_ids":["IAS2.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000029","tested_point":"QST.IAS2.000029","difficulty":"BEGINNER","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000002","section_id":"inventories-definition"},"references":["IAS 2 §6","IAS 2"],"exercise":{"prompt":{"fr":"","en":"Which of these items meet the definition of inventories? (several answers possible)","es":""},"explanation":{"fr":"","en":"Finished goods, work in progress and materials and supplies awaiting use in production are inventories (IAS 2, para. 6 and 8). A building occupied by the head office and software used over several periods serve the business without being sold or consumed in production.","es":""},"common_error":{"fr":"","en":"Classifying as inventory an item held for long-term use by the entity.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Electronic components awaiting assembly at a manufacturer.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The office building occupied by the entity's head office.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: a building occupied by the entity is used over several periods; it is not inventory.","es":""}},{"id":"C","text":{"fr":"","en":"Finished goods stored pending their sale.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Management software used by the accounting department for several years.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: software used internally over several periods is neither sold nor consumed in production.","es":""}},{"id":"E","text":{"fr":"","en":"Television sets being assembled on the production line.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000030","standard_id":"IAS2","concept_ids":["IAS2.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000030","tested_point":"QST.IAS2.000030","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000002","section_id":"inventories-definition"},"references":["IAS 2 §6","IAS 2"],"exercise":{"prompt":{"fr":"","en":"Which statements about net realisable value are correct? (several answers possible)","es":""},"explanation":{"fr":"","en":"Net realisable value 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, para. 6). It is entity-specific, unlike fair value, which is an exit price between market participants; the two may therefore differ (IAS 2, para. 7).","es":""},"common_error":{"fr":"","en":"Equating net realisable value with fair value less costs to sell.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is equal, by definition, to fair value less costs to sell.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the two amounts may differ, net realisable value being entity-specific.","es":""}},{"id":"B","text":{"fr":"","en":"It is specific to the entity holding the inventory.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It takes into account the estimated costs of completion.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It is the exit price that market participants would agree at the measurement date.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: this exit price between market participants describes fair value.","es":""}},{"id":"E","text":{"fr":"","en":"It starts from the estimated selling price in the ordinary course of business.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000031","standard_id":"IAS2","concept_ids":["IAS2.DEFINITIONS.KEY_TERMS"],"dimension":"APPLICATION","context":"V1_QST.IAS2.000031","tested_point":"QST.IAS2.000031","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000002","section_id":"inventories-definition"},"references":["IAS 2 §6","IAS 2"],"exercise":{"prompt":{"fr":"","en":"Torréfia holds a batch of green coffee. It plans to roast it and sell the resulting coffee to its own customers at an estimated price of EUR 31,000, after estimated costs of completion of EUR 4,500 and estimated selling costs of EUR 1,500. In the principal market for green coffee, an identical batch would be exchanged between market participants at EUR 22,800, with costs to sell of EUR 800. What is the net realisable value of the batch for Torréfia?","es":""},"explanation":{"fr":"","en":"Net realisable value is entity-specific: it is based on the price Torréfia expects to obtain in the ordinary course of its business, less the estimated costs of completion and of sale (IAS 2, para. 6 and 7). Computation: 31,000 − 4,500 − 1,500 = EUR 25,000. The market price of green coffee less costs to sell gives a fair value less costs to sell of EUR 22,000, which may differ from net realisable value. The case states that Torréfia normally sells this coffee after roasting: this entity-specific outlet is the basis for the estimated selling price. The estimated prices and costs are facts of the case.","es":""},"common_error":{"fr":"","en":"Equating net realisable value with fair value less costs to sell.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"EUR 22,000, i.e. fair value less costs to sell.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: EUR 22,000 is fair value less costs to sell, not the entity-specific value.","es":""}},{"id":"B","text":{"fr":"","en":"EUR 25,000.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"EUR 26,500, after deducting the costs of completion only.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the estimated selling costs of EUR 1,500 must also be deducted.","es":""}},{"id":"D","text":{"fr":"","en":"EUR 22,800, i.e. the principal market price.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: a gross market price is neither net realisable value nor a value net of costs.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000032","standard_id":"IAS2","concept_ids":["IAS2.DEFINITIONS.KEY_TERMS"],"dimension":"APPLICATION","context":"V1_QST.IAS2.000032","tested_point":"QST.IAS2.000032","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000002","section_id":"inventories-definition"},"references":["IAS 2","IAS 2 §6"],"exercise":{"prompt":{"fr":"","en":"Logivia performs consulting engagements. To fulfil a contract with a customer, it incurs staff and travel costs; no goods are produced and no asset within the scope of another standard arises. The management controller proposes to recognise these costs as inventories under IAS 2. What should be the answer?","es":""},"explanation":{"fr":"","en":"Costs incurred to fulfil a contract with a customer that do not give rise to inventories, or to assets within the scope of another standard, are accounted for under IFRS 15 (IAS 2, para. 8). Staff and travel costs are neither goods held for sale nor materials or supplies (IAS 2, para. 6). The IFRS 15 treatment of these costs is not tested here.","es":""},"common_error":{"fr":"","en":"Recognising as inventory every cost of fulfilling a service contract.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The proposal is correct: every cost incurred for a customer is work in progress.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: a cost incurred for a customer is inventory only if it gives rise to inventory.","es":""}},{"id":"B","text":{"fr":"","en":"These costs fall under IAS 2 if the entity chooses to present them as inventories in its statement of financial position.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: classification as inventory follows from the definition, not from a presentation choice.","es":""}},{"id":"C","text":{"fr":"","en":"These costs are inventories of supplies, since they are consumed in rendering the services.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: staff and travel costs are not materials or supplies.","es":""}},{"id":"D","text":{"fr":"","en":"These costs do not give rise to inventories; they fall under IFRS 15.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000033","standard_id":"IAS2","concept_ids":["IAS2.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000033","tested_point":"QST.IAS2.000033","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000002","section_id":"inventories-definition"},"references":["IAS 2 §6"],"exercise":{"prompt":{"fr":"","en":"Netéclat provides industrial cleaning services. It holds detergents to be consumed during its jobs at customers' premises. How should these products be characterised under IAS 2?","es":""},"explanation":{"fr":"","en":"The definition of inventories covers raw materials and supplies to be consumed in the rendering of services (IAS 2, para. 6). Netéclat's detergents, consumed during its jobs, fall within it, even though they are not resold as such.","es":""},"common_error":{"fr":"","en":"Restricting inventories to manufacturing and trading entities.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Inventories: supplies to be consumed in rendering services.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Expenses of the period of purchase, since they will never be resold to customers.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the definition of inventories is not limited to goods for resale; these supplies are inventories.","es":""}},{"id":"C","text":{"fr":"","en":"Non-current assets, since they are essential to the entity's business.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: these products are consumed during the jobs; they are not used over several periods.","es":""}},{"id":"D","text":{"fr":"","en":"Inventories, but only if they are invoiced to customers separately from the service.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: separate invoicing is not required; consumption in the service is enough.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000034","standard_id":"IAS2","concept_ids":["IAS2.MEASUREMENT.PRINCIPLE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000034","tested_point":"QST.IAS2.000034","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":30,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000002","section_id":"measurement-principle"},"references":["IAS 2 §9"],"exercise":{"prompt":{"fr":"","en":"Under IAS 2, inventories are measured at the lower of cost and net realisable value.","es":""},"explanation":{"fr":"","en":"This is the measurement rule for inventories set by the standard: the lower of the two amounts, cost or net realisable value, is used (IAS 2, para. 9).","es":""},"common_error":{"fr":"","en":"Always using cost, even when net realisable value is lower.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000035","standard_id":"IAS2","concept_ids":["IAS2.MEASUREMENT.PRINCIPLE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000035","tested_point":"QST.IAS2.000035","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":35,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000002","section_id":"measurement-principle"},"references":["IAS 2 §9"],"exercise":{"prompt":{"fr":"","en":"When the net realisable value of an inventory item exceeds its cost, the entity remeasures the item at its net realisable value and recognises a gain.","es":""},"explanation":{"fr":"","en":"Inventories are measured at the lower of cost and net realisable value (IAS 2, para. 9). If net realisable value exceeds cost, the item remains measured at cost: no gain is recognised before the sale.","es":""},"common_error":{"fr":"","en":"Remeasuring inventories above cost when net realisable value is higher.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000036","standard_id":"IAS2","concept_ids":["IAS2.MEASUREMENT.PRINCIPLE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000036","tested_point":"QST.IAS2.000036","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000002","section_id":"measurement-principle"},"references":["IAS 2 §9"],"exercise":{"prompt":{"fr":"","en":"Ombrelia holds a batch of parasols with a cost of EUR 800 and a net realisable value of EUR 950. At what amount is this batch included in inventories?","es":""},"explanation":{"fr":"","en":"The batch is measured at the lower of cost (EUR 800) and net realisable value (EUR 950), i.e. EUR 800 (IAS 2, para. 9). The expected margin of EUR 150 is not anticipated.","es":""},"common_error":{"fr":"","en":"Remeasuring inventories above cost when net realisable value is higher.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"EUR 950, its net realisable value.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: using EUR 950 would carry the inventory above its cost.","es":""}},{"id":"B","text":{"fr":"","en":"EUR 800.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"EUR 875, the average of cost and net realisable value.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the standard provides for no average; it uses the lower of the two amounts.","es":""}},{"id":"D","text":{"fr":"","en":"EUR 150, the difference between net realisable value and cost.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: EUR 150 is the expected margin, not a value of the inventory.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000037","standard_id":"IAS2","concept_ids":["IAS2.MEASUREMENT.PRINCIPLE","IAS2.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000037","tested_point":"QST.IAS2.000037","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000002","section_id":"inventories-definition"},"references":["IAS 2 §9","IAS 2 §6"],"exercise":{"prompt":{"fr":"","en":"Vitralis is manufacturing a glass roof whose cost incurred at the reporting date amounts to EUR 1,200. Once completed, it can be sold for EUR 1,300; the remaining costs of completion are estimated at EUR 150 and the selling costs at EUR 50. At what amount is this glass roof in progress measured at the reporting date?","es":""},"explanation":{"fr":"","en":"Net realisable value: 1,300 − 150 − 50 = EUR 1,100, the estimated selling price less the estimated costs of completion and of sale (IAS 2, para. 6). As the cost incurred (EUR 1,200) exceeds that value, the work in progress is measured at EUR 1,100, the lower of the two amounts (IAS 2, para. 9).","es":""},"common_error":{"fr":"","en":"Forgetting the costs of completion or the selling costs in net realisable value.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"EUR 1,200, the cost incurred at the reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: cost exceeds net realisable value; the lower of the two must be used.","es":""}},{"id":"B","text":{"fr":"","en":"EUR 1,150, the selling price less the costs of completion.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the selling costs of EUR 50 must also be deducted.","es":""}},{"id":"C","text":{"fr":"","en":"EUR 1,100.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"EUR 1,300, the expected selling price of the completed glass roof.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the gross selling price is neither cost nor net realisable value.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000038","standard_id":"IAS2","concept_ids":["IAS2.MEASUREMENT.PRINCIPLE","IAS2.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000038","tested_point":"QST.IAS2.000038","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000001","section_id":"scope-exclusions"},"references":["IAS 2 §9","IAS 2 §3"],"exercise":{"prompt":{"fr":"","en":"Which statements about the measurement of inventories under IAS 2 are correct? (several answers possible)","es":""},"explanation":{"fr":"","en":"Inventories are measured at the lower of cost and net realisable value (IAS 2, para. 9): net realisable value is used only if it is lower than cost. Inventories of commodity broker-traders measured at fair value less costs to sell are excluded from the measurement requirements of the standard (IAS 2, para. 3).","es":""},"common_error":{"fr":"","en":"Remeasuring inventories above cost when net realisable value is higher.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"An item whose net realisable value exceeds cost is remeasured to that value.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: this rule never carries an item above its cost.","es":""}},{"id":"B","text":{"fr":"","en":"An item whose net realisable value is lower than cost is measured at that net realisable value.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"An item whose net realisable value exceeds cost remains measured at cost.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Inventories are measured at their estimated selling price, with no deduction of the costs still to be incurred.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the measurement basis is not the gross selling price.","es":""}},{"id":"E","text":{"fr":"","en":"Inventories of a commodity broker-trader measured at fair value less costs to sell are outside this measurement rule.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000039","standard_id":"IAS2","concept_ids":["IAS2.MEASUREMENT.PRINCIPLE","IAS2.DEFINITIONS.KEY_TERMS"],"dimension":"CALCULATION","context":"V1_VG.IAS2.000101","tested_point":"VG.IAS2.000101","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000002","section_id":"inventories-definition"},"references":["IAS 2 §9","IAS 2 §6"],"exercise":{"prompt":{"fr":"","en":"Menuisor makes custom staircases. At the reporting date, a staircase in progress has a cost incurred of {cost}. Once completed, it will be sold for {selling_price}; the estimated costs of completion amount to {completion_costs} and the estimated selling costs to {selling_costs}. Compute the net realisable value of the staircase and the amount at which it is measured in inventories.","es":""},"explanation":{"fr":"","en":"Net realisable value: 19,500 − 1,200 − 900 = EUR 17,400 (IAS 2, para. 6). The cost incurred of EUR 18,000 exceeds that value: the staircase is measured at EUR 17,400, the lower of the two amounts (IAS 2, para. 9). The estimated prices and costs are facts of the case.","es":""},"common_error":{"fr":"","en":"Forgetting the costs of completion and using EUR 18,600 as net realisable value.","es":""},"format":"CALCULATION","placeholders":[{"id":"cost","value":"18000","unit":"EUR"},{"id":"selling_price","value":"19500","unit":"EUR"},{"id":"completion_costs","value":"1200","unit":"EUR"},{"id":"selling_costs","value":"900","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Cost incurred at the reporting date","es":""},"value":"18000","unit":"EUR"},{"label":{"fr":"","en":"Estimated selling price of the completed staircase","es":""},"value":"19500","unit":"EUR"},{"label":{"fr":"","en":"Estimated costs of completion","es":""},"value":"1200","unit":"EUR"},{"label":{"fr":"","en":"Estimated selling costs","es":""},"value":"900","unit":"EUR"}],"steps":[{"id":"NRV","label":{"fr":"","en":"Net realisable value","es":""},"answer":17400,"tolerance":0,"unit":"EUR"},{"id":"MEASUREMENT","label":{"fr":"","en":"Measurement amount in inventories","es":""},"answer":17400,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"NRV","meaning":{"fr":"","en":"Net realisable value","es":""},"expression":"a - b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Estimated selling price of the completed staircase","es":""},"value":19500,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Estimated costs of completion","es":""},"value":1200,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Estimated selling costs","es":""},"value":900,"unit":"EUR"}],"result":17400,"unit":"EUR"}],"rationale":{"fr":"","en":"The cost incurred of EUR 18,000 exceeds that value: the staircase is measured at EUR 17,400, the lower of the two amounts (IAS 2, para. 9).","es":""},"references":["REF.IAS2.9","REF.IAS2.6"]}},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS2.000040","standard_id":"IAS2","concept_ids":["IAS2.MEASUREMENT.PRINCIPLE","IAS2.DEFINITIONS.KEY_TERMS"],"dimension":"CALCULATION","context":"V1_VG.IAS2.000101","tested_point":"VG.IAS2.000101","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000002","section_id":"inventories-definition"},"references":["IAS 2 §9","IAS 2 §6"],"exercise":{"prompt":{"fr":"","en":"The Sylvebois workshop is finishing a solid oak table intended for sale in its showroom. The accumulated cost of the table is {cost}. Its expected selling price is {selling_price}. Finishing costs of {completion_costs} (varnish and labour) remain to be incurred, and the sales agent will earn a commission of {selling_costs} on the sale. Determine the net realisable value and the amount of the table in inventories.","es":""},"explanation":{"fr":"","en":"Net realisable value: 8,100 − 450 − 320 = EUR 7,330 (IAS 2, para. 6). It exceeds the cost of EUR 7,250: the table remains measured at cost, the lower of the two amounts (IAS 2, para. 9). The difference of EUR 80 is not recognised. The estimated prices and costs are facts of the case.","es":""},"common_error":{"fr":"","en":"Carrying the table at EUR 7,330, above its cost.","es":""},"format":"CALCULATION","placeholders":[{"id":"cost","value":"7250","unit":"EUR"},{"id":"selling_price","value":"8100","unit":"EUR"},{"id":"completion_costs","value":"450","unit":"EUR"},{"id":"selling_costs","value":"320","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Accumulated cost of the table","es":""},"value":"7250","unit":"EUR"},{"label":{"fr":"","en":"Expected selling price","es":""},"value":"8100","unit":"EUR"},{"label":{"fr":"","en":"Finishing costs still to be incurred","es":""},"value":"450","unit":"EUR"},{"label":{"fr":"","en":"Sales commission","es":""},"value":"320","unit":"EUR"}],"steps":[{"id":"NRV","label":{"fr":"","en":"Net realisable value","es":""},"answer":7330,"tolerance":0,"unit":"EUR"},{"id":"MEASUREMENT","label":{"fr":"","en":"Amount of the table in inventories","es":""},"answer":7250,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"NRV","meaning":{"fr":"","en":"Net realisable value","es":""},"expression":"a - b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Expected selling price","es":""},"value":8100,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Finishing costs still to be incurred","es":""},"value":450,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Sales commission","es":""},"value":320,"unit":"EUR"}],"result":7330,"unit":"EUR"}],"rationale":{"fr":"","en":"It exceeds the cost of EUR 7,250: the table remains measured at cost, the lower of the two amounts (IAS 2, para. 9).","es":""},"references":["REF.IAS2.9","REF.IAS2.6"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000041","standard_id":"IAS2","concept_ids":["IAS2.MEASUREMENT.PRINCIPLE","IAS2.DEFINITIONS.KEY_TERMS"],"dimension":"CALCULATION","context":"V1_VG.IAS2.000101","tested_point":"VG.IAS2.000101","difficulty":"BEGINNER","source":"V1","format":"NUMERICAL","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000002","section_id":"inventories-definition"},"references":["IAS 2 §9","IAS 2 §6"],"exercise":{"prompt":{"fr":"","en":"The Cyclarde shop bought an electric bicycle for {cost}. At the reporting date, it expects to sell it for {selling_price}, with delivery and the salesperson's commission amounting to {selling_costs}. No costs of completion are expected. Compute the net realisable value of the bicycle and its amount in inventories.","es":""},"explanation":{"fr":"","en":"Net realisable value: 2,650 − 380 = EUR 2,270, as no costs of completion are to be incurred (IAS 2, para. 6). It is lower than the cost of EUR 2,400: the bicycle is measured at EUR 2,270 (IAS 2, para. 9). The estimated prices and costs are facts of the case.","es":""},"common_error":{"fr":"","en":"Comparing cost with the gross selling price of EUR 2,650 and keeping cost.","es":""},"format":"CALCULATION","placeholders":[{"id":"cost","value":"2400","unit":"EUR"},{"id":"selling_price","value":"2650","unit":"EUR"},{"id":"selling_costs","value":"380","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Purchase cost of the bicycle","es":""},"value":"2400","unit":"EUR"},{"label":{"fr":"","en":"Estimated selling price","es":""},"value":"2650","unit":"EUR"},{"label":{"fr":"","en":"Estimated selling costs (delivery and commission)","es":""},"value":"380","unit":"EUR"}],"steps":[{"id":"NRV","label":{"fr":"","en":"Net realisable value","es":""},"answer":2270,"tolerance":0,"unit":"EUR"},{"id":"MEASUREMENT","label":{"fr":"","en":"Amount of the bicycle in inventories","es":""},"answer":2270,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"NRV","meaning":{"fr":"","en":"Net realisable value","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Estimated selling price","es":""},"value":2650,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Estimated selling costs (delivery and commission)","es":""},"value":380,"unit":"EUR"}],"result":2270,"unit":"EUR"}],"rationale":{"fr":"","en":"It is lower than the cost of EUR 2,400: the bicycle is measured at EUR 2,270 (IAS 2, para. 9).","es":""},"references":["REF.IAS2.9","REF.IAS2.6"]}},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS2.000042","standard_id":"IAS2","concept_ids":["IAS2.MEASUREMENT.PRINCIPLE","IAS2.DEFINITIONS.KEY_TERMS","IAS2.NRV.WRITE_DOWN"],"dimension":"CALCULATION","context":"V1_VG.IAS2.000102","tested_point":"VG.IAS2.000102","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000002","section_id":"inventories-definition"},"references":["IAS 2 §9","IAS 2 §6","IAS 2 §29"],"exercise":{"prompt":{"fr":"","en":"Domélec, a distributor of household appliances, holds three unrelated lots of goods at the reporting date; according to the facts of the case, no grouping is appropriate. Lot R: cost {cost_r}, estimated selling price {price_r}, estimated selling costs {sell_r}. Lot S: cost {cost_s}, estimated selling price {price_s}, estimated selling costs {sell_s}. Lot T: cost {cost_t}, estimated selling price {price_t}, estimated selling costs {sell_t}. No costs of completion are to be incurred. Compute the total amount of inventories at the reporting date and the total write-down.","es":""},"explanation":{"fr":"","en":"Net realisable values (IAS 2, para. 6): lot R 13,800 − 1,100 = EUR 12,700; lot S 8,900 − 760 = EUR 8,140; lot T 6,000 − 450 = EUR 5,550. Each lot is measured at the lower of its cost and its net realisable value (IAS 2, para. 9), item by item since no grouping is appropriate (IAS 2, para. 29): R EUR 12,000; S EUR 8,140; T EUR 5,550; total EUR 25,690. Write-down: S EUR 360 and T EUR 750, i.e. EUR 1,110. An overall comparison (total cost EUR 26,800 against total net realisable value EUR 26,390) would wrongly let the unrealised margin on lot R offset the losses on the other lots.","es":""},"common_error":{"fr":"","en":"Comparing the totals and recognising a write-down of only EUR 410.","es":""},"format":"CALCULATION","placeholders":[{"id":"cost_r","value":"12000","unit":"EUR"},{"id":"price_r","value":"13800","unit":"EUR"},{"id":"sell_r","value":"1100","unit":"EUR"},{"id":"cost_s","value":"8500","unit":"EUR"},{"id":"price_s","value":"8900","unit":"EUR"},{"id":"sell_s","value":"760","unit":"EUR"},{"id":"cost_t","value":"6300","unit":"EUR"},{"id":"price_t","value":"6000","unit":"EUR"},{"id":"sell_t","value":"450","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Lot R: cost","es":""},"value":"12000","unit":"EUR"},{"label":{"fr":"","en":"Lot R: estimated selling price","es":""},"value":"13800","unit":"EUR"},{"label":{"fr":"","en":"Lot R: estimated selling costs","es":""},"value":"1100","unit":"EUR"},{"label":{"fr":"","en":"Lot S: cost","es":""},"value":"8500","unit":"EUR"},{"label":{"fr":"","en":"Lot S: estimated selling price","es":""},"value":"8900","unit":"EUR"},{"label":{"fr":"","en":"Lot S: estimated selling costs","es":""},"value":"760","unit":"EUR"},{"label":{"fr":"","en":"Lot T: cost","es":""},"value":"6300","unit":"EUR"},{"label":{"fr":"","en":"Lot T: estimated selling price","es":""},"value":"6000","unit":"EUR"},{"label":{"fr":"","en":"Lot T: estimated selling costs","es":""},"value":"450","unit":"EUR"}],"steps":[{"id":"TOTAL_MEASUREMENT","label":{"fr":"","en":"Total amount of inventories","es":""},"answer":25690,"tolerance":0,"unit":"EUR"},{"id":"TOTAL_WRITE_DOWN","label":{"fr":"","en":"Total write-down","es":""},"answer":1110,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000043","standard_id":"IAS2","concept_ids":["IAS2.MEASUREMENT.PRINCIPLE","IAS2.DEFINITIONS.KEY_TERMS","IAS2.NRV.WRITE_DOWN"],"dimension":"CALCULATION","context":"V1_VG.IAS2.000102","tested_point":"VG.IAS2.000102","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000002","section_id":"inventories-definition"},"references":["IAS 2 §9","IAS 2 §6","IAS 2 §29"],"exercise":{"prompt":{"fr":"","en":"The Aérotech group manufactures cabin equipment. At the reporting date, it holds a passenger seat in progress and a completed cabin panel, two separate items that the facts of the case do not allow to be grouped. Seat in progress: cost incurred {cost_w}, estimated selling price once completed {price_w}, estimated costs of completion {completion_w}, estimated selling costs {sell_w}. Completed panel: cost {cost_f}, estimated selling price {price_f}, estimated selling costs {sell_f}. What is the total amount of these inventories in the statement of financial position, and what write-down must be recognised?","es":""},"explanation":{"fr":"","en":"Seat: net realisable value 19,000 − 2,600 − 700 = EUR 15,700, higher than the cost of EUR 15,400, hence measurement at cost. Panel: 10,200 − 950 = EUR 9,250, lower than the cost of EUR 9,800, hence measurement at EUR 9,250 (IAS 2, para. 6 and 9). Total: 15,400 + 9,250 = EUR 24,650; write-down EUR 550. The comparison is made item by item (IAS 2, para. 29): on the totals (cost EUR 25,200, net realisable value EUR 24,950), only EUR 250 would wrongly have been written down.","es":""},"common_error":{"fr":"","en":"Comparing the totals and writing down only EUR 250.","es":""},"format":"CALCULATION","placeholders":[{"id":"cost_w","value":"15400","unit":"EUR"},{"id":"price_w","value":"19000","unit":"EUR"},{"id":"completion_w","value":"2600","unit":"EUR"},{"id":"sell_w","value":"700","unit":"EUR"},{"id":"cost_f","value":"9800","unit":"EUR"},{"id":"price_f","value":"10200","unit":"EUR"},{"id":"sell_f","value":"950","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Seat: cost incurred","es":""},"value":"15400","unit":"EUR"},{"label":{"fr":"","en":"Seat: estimated selling price once completed","es":""},"value":"19000","unit":"EUR"},{"label":{"fr":"","en":"Seat: estimated costs of completion","es":""},"value":"2600","unit":"EUR"},{"label":{"fr":"","en":"Seat: estimated selling costs","es":""},"value":"700","unit":"EUR"},{"label":{"fr":"","en":"Panel: cost","es":""},"value":"9800","unit":"EUR"},{"label":{"fr":"","en":"Panel: estimated selling price","es":""},"value":"10200","unit":"EUR"},{"label":{"fr":"","en":"Panel: estimated selling costs","es":""},"value":"950","unit":"EUR"}],"steps":[{"id":"TOTAL_MEASUREMENT","label":{"fr":"","en":"Total amount of inventories","es":""},"answer":24650,"tolerance":0,"unit":"EUR"},{"id":"TOTAL_WRITE_DOWN","label":{"fr":"","en":"Total write-down","es":""},"answer":550,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"TOTAL_MEASUREMENT","meaning":{"fr":"","en":"Total amount of inventories","es":""},"expression":"a + (b - c)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Seat: cost incurred","es":""},"value":15400,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Panel: estimated selling price","es":""},"value":10200,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Panel: estimated selling costs","es":""},"value":950,"unit":"EUR"}],"result":24650,"unit":"EUR"}],"references":["REF.IAS2.9","REF.IAS2.6","REF.IAS2.29"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000044","standard_id":"IAS2","concept_ids":["IAS2.MEASUREMENT.PRINCIPLE","IAS2.DEFINITIONS.KEY_TERMS","IAS2.NRV.WRITE_DOWN"],"dimension":"CALCULATION","context":"V1_VG.IAS2.000102","tested_point":"VG.IAS2.000102","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000002","section_id":"inventories-definition"},"references":["IAS 2 §9","IAS 2 §6","IAS 2 §29"],"exercise":{"prompt":{"fr":"","en":"The wholesaler Rouelibre holds two models of city bicycles, each measured separately according to the facts of the case. Alto model: {units_a} units, unit cost {unit_cost_a}, estimated unit selling price {unit_price_a}, estimated unit selling costs {unit_sell_a}. Brio model: {units_b} units, unit cost {unit_cost_b}, estimated unit selling price {unit_price_b}, estimated unit selling costs {unit_sell_b}. Compute the total amount of the bicycles in inventories and the write-down to be recognised.","es":""},"explanation":{"fr":"","en":"Alto: unit net realisable value 335 − 40 = EUR 295, lower than the cost of EUR 310; measurement 40 × 295 = EUR 11,800, write-down 40 × 15 = EUR 600. Brio: 510 − 45 = EUR 465, higher than the cost of EUR 420; measurement at cost, 25 × 420 = EUR 10,500 (IAS 2, para. 6 and 9). Total: EUR 22,300; write-down EUR 600. Each model is dealt with separately (IAS 2, para. 29): the unrealised margin on the Brio model does not offset the loss on the Alto model.","es":""},"common_error":{"fr":"","en":"Offsetting the loss on the Alto model against the margin on the Brio model and writing down nothing.","es":""},"format":"CALCULATION","placeholders":[{"id":"units_a","value":"40","unit":"UNITS"},{"id":"unit_cost_a","value":"310","unit":"EUR"},{"id":"unit_price_a","value":"335","unit":"EUR"},{"id":"unit_sell_a","value":"40","unit":"EUR"},{"id":"units_b","value":"25","unit":"UNITS"},{"id":"unit_cost_b","value":"420","unit":"EUR"},{"id":"unit_price_b","value":"510","unit":"EUR"},{"id":"unit_sell_b","value":"45","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Alto: number of units","es":""},"value":"40","unit":"UNITS"},{"label":{"fr":"","en":"Alto: unit cost","es":""},"value":"310","unit":"EUR"},{"label":{"fr":"","en":"Alto: estimated unit selling price","es":""},"value":"335","unit":"EUR"},{"label":{"fr":"","en":"Alto: estimated unit selling costs","es":""},"value":"40","unit":"EUR"},{"label":{"fr":"","en":"Brio: number of units","es":""},"value":"25","unit":"UNITS"},{"label":{"fr":"","en":"Brio: unit cost","es":""},"value":"420","unit":"EUR"},{"label":{"fr":"","en":"Brio: estimated unit selling price","es":""},"value":"510","unit":"EUR"},{"label":{"fr":"","en":"Brio: estimated unit selling costs","es":""},"value":"45","unit":"EUR"}],"steps":[{"id":"TOTAL_MEASUREMENT","label":{"fr":"","en":"Total amount of the bicycles in inventories","es":""},"answer":22300,"tolerance":0,"unit":"EUR"},{"id":"TOTAL_WRITE_DOWN","label":{"fr":"","en":"Write-down to be recognised","es":""},"answer":600,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000045","standard_id":"IAS2","concept_ids":["IAS2.MEASUREMENT.PRINCIPLE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000045","tested_point":"QST.IAS2.000045","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000002","section_id":"measurement-principle"},"references":["IAS 2 §9"],"exercise":{"prompt":{"fr":"","en":"While reviewing Céramiq's inventories, you find that a batch of tiles with a cost of EUR 5,000 has been recorded at EUR 5,400, its net realisable value, the difference of EUR 400 having been recognised as income. Which conclusion should be drawn?","es":""},"explanation":{"fr":"","en":"Inventories are measured at the lower of cost and net realisable value (IAS 2, para. 9). As net realisable value (EUR 5,400) exceeds cost (EUR 5,000), the batch must remain at EUR 5,000: the difference of EUR 400 can be recognised neither in profit or loss nor elsewhere. The remeasurement entry must be reversed.","es":""},"common_error":{"fr":"","en":"Remeasuring inventories above cost when net realisable value is higher.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The treatment is correct, because net realisable value is the best estimate of what the batch will realise.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: net realisable value is used only if it is lower than cost.","es":""}},{"id":"B","text":{"fr":"","en":"The treatment is acceptable provided the difference of EUR 400 is presented in other comprehensive income rather than in profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: no presentation allows this inventory to be carried above its cost.","es":""}},{"id":"C","text":{"fr":"","en":"The batch must be brought back to its cost of EUR 5,000 and the income of EUR 400 reversed.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The batch must be written down by EUR 400 below its cost, to offset the income already recognised.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the batch has not lost value; the remeasurement just needs to be reversed, with no write-down below cost.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000046","standard_id":"IAS2","concept_ids":["IAS2.COST.PURCHASE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000046","tested_point":"QST.IAS2.000046","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000003","section_id":"cost-components"},"references":["IAS 2 §11"],"exercise":{"prompt":{"fr":"","en":"Trade discounts and rebates obtained from a supplier are deducted in determining the costs of purchase of the inventories bought.","es":""},"explanation":{"fr":"","en":"The costs of purchase start from the purchase price, plus non-recoverable duties and taxes, transport, handling and other directly attributable costs; trade discounts, rebates and other similar items are deducted (IAS 2, para. 11).","es":""},"common_error":{"fr":"","en":"Using the list price and recognising the discount as income.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000047","standard_id":"IAS2","concept_ids":["IAS2.COST.PURCHASE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000047","tested_point":"QST.IAS2.000047","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000003","section_id":"cost-components"},"references":["IAS 2 §11"],"exercise":{"prompt":{"fr":"","en":"Ardoisine recovers from the tax authorities the VAT paid to its suppliers. It must nevertheless include that VAT in the costs of purchase of its merchandise inventories.","es":""},"explanation":{"fr":"","en":"Only import duties and other taxes that are not subsequently recoverable from the taxing authorities are included in the costs of purchase (IAS 2, para. 11). The VAT recovered by Ardoisine is a receivable from the tax authorities, not an element of the cost of inventories.","es":""},"common_error":{"fr":"","en":"Including in cost the recoverable VAT shown on the invoice.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000048","standard_id":"IAS2","concept_ids":["IAS2.COST.PURCHASE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000048","tested_point":"QST.IAS2.000048","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000003","section_id":"cost-components"},"references":["IAS 2 §11"],"exercise":{"prompt":{"fr":"","en":"Belvoir imports spare parts held for resale. Which of the following amounts forms part of the costs of purchase of these inventories?","es":""},"explanation":{"fr":"","en":"The costs of purchase comprise the purchase price, import duties and other non-recoverable taxes, transport, handling and other costs directly attributable to the acquisition, less trade discounts, rebates and other similar items (IAS 2, para. 11). Non-recoverable customs duties are therefore included; recoverable VAT, the price before discount and a resale commission are not.","es":""},"common_error":{"fr":"","en":"Including recoverable VAT in cost.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Import VAT, which Belvoir subsequently recovers from the tax authorities.","es":""},"correct":false,"feedback":{"fr":"","en":"A tax recoverable from the tax authorities is excluded from the costs of purchase.","es":""}},{"id":"B","text":{"fr":"","en":"Customs duties, which are not recoverable.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The supplier's list price, before the trade discount granted on the invoice.","es":""},"correct":false,"feedback":{"fr":"","en":"The trade discount is deducted: cost is based on the price net of the discount.","es":""}},{"id":"D","text":{"fr":"","en":"The commission paid to an agent in charge of reselling the parts to garages.","es":""},"correct":false,"feedback":{"fr":"","en":"This commission is incurred to sell the parts, it is not attributable to their acquisition.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000049","standard_id":"IAS2","concept_ids":["IAS2.COST.PURCHASE","IAS2.COST.OTHER_AND_EXCLUDED"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000049","tested_point":"QST.IAS2.000049","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000003","section_id":"cost-components"},"references":["IAS 2 §11","IAS 2 §16"],"exercise":{"prompt":{"fr":"","en":"Corvelle buys a batch of glassware held for resale. Which of the following items are included in the costs of purchase of the batch?","es":""},"explanation":{"fr":"","en":"The costs of purchase comprise the purchase price net of discounts and rebates, non-recoverable customs duties, transport, handling and other directly attributable costs (IAS 2, para. 11). Recoverable VAT is excluded, and selling costs such as advertising are recognised as expenses (IAS 2, para. 16).","es":""},"common_error":{"fr":"","en":"Including recoverable VAT.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The VAT invoiced by the supplier, which Corvelle deducts from the VAT it collects.","es":""},"correct":false,"feedback":{"fr":"","en":"Recoverable VAT is not borne by Corvelle: it is excluded from cost.","es":""}},{"id":"B","text":{"fr":"","en":"Transport of the batch to Corvelle's warehouse.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Handling costs when unloading at the warehouse.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Advertising costs incurred to promote the glassware to customers.","es":""},"correct":false,"feedback":{"fr":"","en":"Advertising is a selling cost, recognised as an expense.","es":""}},{"id":"E","text":{"fr":"","en":"Non-recoverable customs duties paid on import.","es":""},"correct":true},{"id":"F","text":{"fr":"","en":"The purchase price, less the volume rebate granted on this batch.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000050","standard_id":"IAS2","concept_ids":["IAS2.COST.PURCHASE"],"dimension":"CALCULATION","context":"V1_VG.IAS2.000201","tested_point":"VG.IAS2.000201","difficulty":"BEGINNER","source":"V1","format":"NUMERICAL","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000003","section_id":"cost-components"},"references":["IAS 2 §11","IAS 2 §10"],"exercise":{"prompt":{"fr":"","en":"Ardelle, a tile wholesaler, buys a batch of floor tiles at a list price of {list_price}. The supplier grants a trade discount of {trade_discount_rate}% on the invoice. Ardelle also pays a carrier {transport} to deliver the batch to its warehouse. The VAT, which is recoverable, amounts to {recoverable_vat}. Compute the costs of purchase of the batch.","es":""},"explanation":{"fr":"","en":"The costs of purchase comprise the purchase price less trade discounts, plus transport costs, but not recoverable VAT (IAS 2, para. 11). Net price: 40,000 × (1 − 10%) = 36,000; costs of purchase: 36,000 + 1,500 = 37,500. The VAT of 7,500 is a receivable from the tax authorities.","es":""},"common_error":{"fr":"","en":"Adding recoverable VAT to cost.","es":""},"format":"CALCULATION","placeholders":[{"id":"list_price","value":"40000","unit":"EUR"},{"id":"trade_discount_rate","value":"10","unit":"PERCENT"},{"id":"transport","value":"1500","unit":"EUR"},{"id":"recoverable_vat","value":"7500","unit":"EUR"}],"data":[{"label":{"fr":"","en":"List price of the batch","es":""},"value":"40000","unit":"EUR"},{"label":{"fr":"","en":"Trade discount rate","es":""},"value":"10","unit":"PERCENT"},{"label":{"fr":"","en":"Transport to the warehouse","es":""},"value":"1500","unit":"EUR"},{"label":{"fr":"","en":"Recoverable VAT","es":""},"value":"7500","unit":"EUR"}],"steps":[{"id":"COST_OF_PURCHASE","label":{"fr":"","en":"Costs of purchase of the batch","es":""},"answer":37500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"COST_OF_PURCHASE","meaning":{"fr":"","en":"Costs of purchase of the batch","es":""},"expression":"(a * (1 - b)) + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"List price of the batch","es":""},"value":40000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Trade discount rate","es":""},"value":10,"unit":"PERCENT"},{"symbol":"c","meaning":{"fr":"","en":"Transport to the warehouse","es":""},"value":1500,"unit":"EUR"}],"result":37500,"unit":"EUR"}],"rationale":{"fr":"","en":"The costs of purchase comprise the purchase price less trade discounts, plus transport costs, but not recoverable VAT (IAS 2, para. 11).","es":""},"references":["REF.IAS2.11"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000051","standard_id":"IAS2","concept_ids":["IAS2.COST.PURCHASE"],"dimension":"CALCULATION","context":"V1_VG.IAS2.000201","tested_point":"VG.IAS2.000201","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000003","section_id":"cost-components"},"references":["IAS 2 §11"],"exercise":{"prompt":{"fr":"","en":"The coffee roaster Brévanne imports a container of green coffee. The invoiced purchase price is {purchase_price}. Brévanne pays non-recoverable customs duties of {customs_duties} and port handling costs of {port_handling}. The supplier grants it a volume rebate of {volume_rebate} on this container. Import VAT of {import_vat} is fully recoverable. Compute the costs of purchase of the container.","es":""},"explanation":{"fr":"","en":"The costs of purchase add the purchase price, non-recoverable duties and handling, then deduct rebates; recoverable VAT is excluded (IAS 2, para. 11). Cost: 62,000 + 4,960 + 1,240 − 3,100 = 65,100. The VAT of 13,020 is recognised as a tax receivable.","es":""},"common_error":{"fr":"","en":"Adding the recoverable VAT of 13,020.","es":""},"format":"CALCULATION","placeholders":[{"id":"purchase_price","value":"62000","unit":"EUR"},{"id":"customs_duties","value":"4960","unit":"EUR"},{"id":"port_handling","value":"1240","unit":"EUR"},{"id":"volume_rebate","value":"3100","unit":"EUR"},{"id":"import_vat","value":"13020","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Invoiced purchase price","es":""},"value":"62000","unit":"EUR"},{"label":{"fr":"","en":"Non-recoverable customs duties","es":""},"value":"4960","unit":"EUR"},{"label":{"fr":"","en":"Port handling","es":""},"value":"1240","unit":"EUR"},{"label":{"fr":"","en":"Volume rebate","es":""},"value":"3100","unit":"EUR"},{"label":{"fr":"","en":"Recoverable import VAT","es":""},"value":"13020","unit":"EUR"}],"steps":[{"id":"COST_OF_PURCHASE","label":{"fr":"","en":"Costs of purchase of the container","es":""},"answer":65100,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"COST_OF_PURCHASE","meaning":{"fr":"","en":"Costs of purchase of the container","es":""},"expression":"a + b + c - d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Invoiced purchase price","es":""},"value":62000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Non-recoverable customs duties","es":""},"value":4960,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Port handling","es":""},"value":1240,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Volume rebate","es":""},"value":3100,"unit":"EUR"}],"result":65100,"unit":"EUR"}],"references":["REF.IAS2.11"]}},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS2.000052","standard_id":"IAS2","concept_ids":["IAS2.COST.PURCHASE","IAS2.COST.OTHER_AND_EXCLUDED"],"dimension":"CALCULATION","context":"V1_VG.IAS2.000201","tested_point":"VG.IAS2.000201","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000003","section_id":"cost-components"},"references":["IAS 2 §11","IAS 2 §16"],"exercise":{"prompt":{"fr":"","en":"Calvène, a distributor of electrical equipment, imports {units} motors at a unit list price of {unit_list_price}, with a trade discount of {trade_discount_rate}%. It bears freight of {freight}, transit insurance of {transit_insurance}, directly attributable to the acquisition, and non-recoverable customs duties of {customs_duties}. Recoverable VAT amounts to {recoverable_vat}. Finally, Calvène spends {advertising} on advertising to announce that the motors are on sale. Compute the total costs of purchase of the batch and the unit cost.","es":""},"explanation":{"fr":"","en":"The costs of purchase include the price net of discount, freight, transit insurance and non-recoverable duties, but exclude recoverable VAT (IAS 2, para. 11). Advertising is a selling cost, recognised as an expense (IAS 2, para. 16). Net price: 2,000 × 85 × (1 − 5%) = 161,500; total cost: 161,500 + 4,200 + 900 + 6,400 = 173,000; unit cost: 173,000 / 2,000 = 86.5.","es":""},"common_error":{"fr":"","en":"Including advertising in the cost of the motors.","es":""},"format":"CALCULATION","placeholders":[{"id":"units","value":"2000","unit":"UNITS"},{"id":"unit_list_price","value":"85","unit":"EUR"},{"id":"trade_discount_rate","value":"5","unit":"PERCENT"},{"id":"freight","value":"4200","unit":"EUR"},{"id":"transit_insurance","value":"900","unit":"EUR"},{"id":"customs_duties","value":"6400","unit":"EUR"},{"id":"recoverable_vat","value":"34600","unit":"EUR"},{"id":"advertising","value":"2500","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Number of motors","es":""},"value":"2000","unit":"UNITS"},{"label":{"fr":"","en":"Unit list price","es":""},"value":"85","unit":"EUR"},{"label":{"fr":"","en":"Trade discount rate","es":""},"value":"5","unit":"PERCENT"},{"label":{"fr":"","en":"Freight","es":""},"value":"4200","unit":"EUR"},{"label":{"fr":"","en":"Transit insurance","es":""},"value":"900","unit":"EUR"},{"label":{"fr":"","en":"Non-recoverable customs duties","es":""},"value":"6400","unit":"EUR"},{"label":{"fr":"","en":"Recoverable VAT","es":""},"value":"34600","unit":"EUR"},{"label":{"fr":"","en":"Advertising for the sale","es":""},"value":"2500","unit":"EUR"}],"steps":[{"id":"COST_OF_PURCHASE","label":{"fr":"","en":"Total costs of purchase of the batch","es":""},"answer":173000,"tolerance":0,"unit":"EUR"},{"id":"UNIT_COST","label":{"fr":"","en":"Unit costs of purchase","es":""},"answer":86.5,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"COST_OF_PURCHASE","meaning":{"fr":"","en":"Total costs of purchase of the batch","es":""},"expression":"(a * b * (1 - c)) + d + e + f","variables":[{"symbol":"a","meaning":{"fr":"","en":"Number of motors","es":""},"value":2000,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Unit list price","es":""},"value":85,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Trade discount rate","es":""},"value":5,"unit":"PERCENT"},{"symbol":"d","meaning":{"fr":"","en":"Freight","es":""},"value":4200,"unit":"EUR"},{"symbol":"e","meaning":{"fr":"","en":"Transit insurance","es":""},"value":900,"unit":"EUR"},{"symbol":"f","meaning":{"fr":"","en":"Non-recoverable customs duties","es":""},"value":6400,"unit":"EUR"}],"result":173000,"unit":"EUR"},{"step":"UNIT_COST","meaning":{"fr":"","en":"Unit costs of purchase","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Total costs of purchase of the batch","es":""},"value":173000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Number of motors","es":""},"value":2000,"unit":"UNITS"}],"result":86.5,"unit":"EUR"}],"rationale":{"fr":"","en":"The costs of purchase include the price net of discount, freight, transit insurance and non-recoverable duties, but exclude recoverable VAT (IAS 2, para. 11).","es":""},"references":["REF.IAS2.11","REF.IAS2.16"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000053","standard_id":"IAS2","concept_ids":["IAS2.COST.PURCHASE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000053","tested_point":"QST.IAS2.000053","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":70,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000003","section_id":"cost-components"},"references":["IAS 2 §10"],"exercise":{"prompt":{"fr":"","en":"Dunelle, which buys materials and manufactures furniture, must determine the cost of its inventories. Which statement correctly describes the components of that cost?","es":""},"explanation":{"fr":"","en":"The cost of inventories comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition (IAS 2, para. 10). It is not limited to the purchase price and is not based on the expected selling price.","es":""},"common_error":{"fr":"","en":"Limiting the cost of inventories to the purchase price for a manufacturer.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Only the invoiced purchase price, all other costs being recognised as expenses.","es":""},"correct":false,"feedback":{"fr":"","en":"The cost of inventories also includes the costs of conversion and other costs incurred in bringing the inventories to their present condition.","es":""}},{"id":"B","text":{"fr":"","en":"The costs of purchase, the costs of conversion and other costs incurred in bringing the inventories to their present location and condition.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"All costs incurred by Dunelle during the period, including selling and general administrative costs, allocated pro rata to the quantities remaining in inventory at the reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"Only costs incurred in bringing the inventories to their present location and condition are included, not all costs of the period.","es":""}},{"id":"D","text":{"fr":"","en":"The expected selling price of the furniture, less a normal margin, regardless of the amount actually incurred.","es":""},"correct":false,"feedback":{"fr":"","en":"The cost of inventories is based on costs incurred, not on a selling price less a margin.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000056","standard_id":"IAS2","concept_ids":["IAS2.COST.PURCHASE"],"dimension":"ANALYSIS","context":"V1_QST.IAS2.000056","tested_point":"QST.IAS2.000056","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000003","section_id":"cost-components"},"references":["IAS 2 §11"],"exercise":{"prompt":{"fr":"","en":"Fenouillet, a fabric wholesaler, receives an invoice showing a price net of discount of 50,000 and recoverable VAT of 10,000. Its accountant records: debit Inventories 60,000, credit Trade payable 60,000. What is the error?","es":""},"explanation":{"fr":"","en":"Taxes recoverable from the taxing authorities are excluded from the costs of purchase (IAS 2, para. 11). Inventories should be debited by 50,000 and the VAT of 10,000 recognised as a receivable; the trade payable of 60,000 is correct since Fenouillet pays the VAT to the supplier.","es":""},"common_error":{"fr":"","en":"Confusing the amount payable to the supplier with the cost of inventories.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The recoverable VAT of 10,000 was included in the cost of inventories instead of being recognised as a tax receivable.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The amount owed to the supplier should have been limited to 50,000, because recoverable VAT is never owed to the supplier but only to the tax authorities.","es":""},"correct":false,"feedback":{"fr":"","en":"The VAT is invoiced and paid to the supplier: the payable of 60,000 is correct, only the debit to inventories is wrong.","es":""}},{"id":"C","text":{"fr":"","en":"No error: the cost of inventories equals the total amount payable to the supplier.","es":""},"correct":false,"feedback":{"fr":"","en":"The costs of purchase exclude recoverable taxes, even if they are paid to the supplier.","es":""}},{"id":"D","text":{"fr":"","en":"The discount should have been added back to cost to arrive at the list price.","es":""},"correct":false,"feedback":{"fr":"","en":"Discounts are deducted from the costs of purchase: the price net of discount is the right starting point.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000057","standard_id":"IAS2","concept_ids":["IAS2.COST.PURCHASE"],"dimension":"ANALYSIS","context":"V1_QST.IAS2.000057","tested_point":"QST.IAS2.000057","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000003","section_id":"cost-components"},"references":["IAS 2 §11"],"exercise":{"prompt":{"fr":"","en":"The cooperative Gaudrette buys 5,000 bags of fertiliser at 30 each, that is 150,000 excluding tax. The contract provides for a rebate of 6,000 on this batch, earned upon delivery, and transport to its silos costs 4,500. Its controller computes a unit cost of 30.90, that is (150,000 + 4,500) / 5,000. What is the error?","es":""},"explanation":{"fr":"","en":"The costs of purchase include transport, and rebates and similar items are deducted (IAS 2, para. 11). Correct cost: 150,000 − 6,000 + 4,500 = 148,500, that is 29.70 per bag. The controller omitted to deduct the rebate.","es":""},"common_error":{"fr":"","en":"Omitting to deduct the discounts and rebates obtained.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The rebate of 6,000 was not deducted: the cost is 148,500, that is 29.70 per bag.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Transport should not have been included, the correct unit cost being equal to the invoiced price per bag.","es":""},"correct":false,"feedback":{"fr":"","en":"Transport to the silos is a cost directly attributable to the acquisition: it is included.","es":""}},{"id":"C","text":{"fr":"","en":"The rebate should have been recognised as income for the period, so the unit cost of 30.90 computed by the controller is correct.","es":""},"correct":false,"feedback":{"fr":"","en":"A rebate obtained on the purchase reduces the costs of purchase; it is not recognised as income.","es":""}},{"id":"D","text":{"fr":"","en":"The computation is correct, the rebate being taken into account only when the bags are resold.","es":""},"correct":false,"feedback":{"fr":"","en":"The rebate is deducted from the costs of purchase on receipt into inventory, not on resale.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000058","standard_id":"IAS2","concept_ids":["IAS2.COST.CONVERSION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000058","tested_point":"QST.IAS2.000058","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000004","section_id":"conversion-costs"},"references":["IAS 2 §12"],"exercise":{"prompt":{"fr":"","en":"At Harlan, depreciation of the factory machinery is a fixed production overhead, which forms part of the costs of conversion of the inventories produced.","es":""},"explanation":{"fr":"","en":"The costs of conversion include costs directly related to the units of production and a systematic allocation of fixed and variable production overheads. Depreciation and maintenance of production equipment remain relatively constant regardless of the volume: they are fixed overheads (IAS 2, para. 12).","es":""},"common_error":{"fr":"","en":"Excluding depreciation of machinery from the cost of the inventories produced.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000059","standard_id":"IAS2","concept_ids":["IAS2.COST.CONVERSION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000059","tested_point":"QST.IAS2.000059","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000004","section_id":"conversion-costs"},"references":["IAS 2 §13"],"exercise":{"prompt":{"fr":"","en":"Iseran produced significantly less than its normal capacity this year. It must increase the amount of fixed production overhead allocated to each unit so that all of these overheads are included in its inventories.","es":""},"explanation":{"fr":"","en":"Fixed production overheads are allocated on the basis of normal capacity. When production is abnormally low, the amount allocated to each unit is not increased: unallocated overheads are recognised as an expense in the period (IAS 2, para. 13).","es":""},"common_error":{"fr":"","en":"Spreading all fixed overheads over a low production.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000060","standard_id":"IAS2","concept_ids":["IAS2.COST.CONVERSION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000060","tested_point":"QST.IAS2.000060","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000004","section_id":"conversion-costs"},"references":["IAS 2 §12"],"exercise":{"prompt":{"fr":"","en":"Which of the following costs of Jouvence's factory is a variable production overhead?","es":""},"explanation":{"fr":"","en":"Variable production overheads vary directly, or nearly directly, with the volume of production, such as indirect materials and indirect labour. Depreciation of buildings and factory management are fixed overheads, and direct labour is a cost directly related to the units of production (IAS 2, para. 12).","es":""},"common_error":{"fr":"","en":"Classifying direct labour as a variable overhead.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Depreciation of the factory building.","es":""},"correct":false,"feedback":{"fr":"","en":"Depreciation of buildings remains relatively constant regardless of volume: it is a fixed overhead.","es":""}},{"id":"B","text":{"fr":"","en":"The salary of the factory manager and the factory administration costs.","es":""},"correct":false,"feedback":{"fr":"","en":"Factory management and administration are fixed production overheads.","es":""}},{"id":"C","text":{"fr":"","en":"Indirect materials, such as workshop lubricants.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Direct labour assigned to the assembly line.","es":""},"correct":false,"feedback":{"fr":"","en":"Direct labour is a cost directly related to the units of production, not an overhead.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000061","standard_id":"IAS2","concept_ids":["IAS2.COST.CONVERSION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000061","tested_point":"QST.IAS2.000061","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000004","section_id":"conversion-costs"},"references":["IAS 2 §13"],"exercise":{"prompt":{"fr":"","en":"Kalimba, a manufacturer of seasonal toys, documents its method of allocating production overheads. Which statements comply with IAS 2?","es":""},"explanation":{"fr":"","en":"Normal capacity is the output an entity expects to achieve on average across several periods or seasons in normal conditions, after allowing for the capacity lost to planned maintenance; actual output may be used when it is close to normal capacity. When production is abnormally high, the fixed overhead per unit is reduced, and variable overheads are allocated on the basis of the actual use of the production facilities (IAS 2, para. 13). The level retained by Kalimba is a matter of judgement, IAS 2 setting no numerical threshold.","es":""},"common_error":{"fr":"","en":"Using a normal capacity unrelated to the average production expected.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Normal capacity is the maximum output the facilities could achieve if operated without any stoppage.","es":""},"correct":false,"feedback":{"fr":"","en":"Normal capacity is not a maximum output without stoppage: it is the average production expected under normal circumstances.","es":""}},{"id":"B","text":{"fr":"","en":"Normal capacity reflects the output an entity expects to achieve on average across several periods or seasons in normal conditions.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The loss of capacity resulting from planned maintenance is taken into account in determining normal capacity.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Actual output may be used when it is close to normal capacity.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"When production is abnormally high, the fixed overhead per unit is increased.","es":""},"correct":false,"feedback":{"fr":"","en":"When production is abnormally high, the amount per unit is decreased so that inventories are not measured above cost.","es":""}},{"id":"F","text":{"fr":"","en":"Variable production overheads are allocated on the basis of normal capacity.","es":""},"correct":false,"feedback":{"fr":"","en":"Variable overheads are allocated on the basis of the actual use of the production facilities.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000062","standard_id":"IAS2","concept_ids":["IAS2.COST.CONVERSION"],"dimension":"CALCULATION","context":"V1_VG.IAS2.000203","tested_point":"VG.IAS2.000203","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000004","section_id":"conversion-costs"},"references":["IAS 2 §13"],"exercise":{"prompt":{"fr":"","en":"Fermine manufactures wooden pallets. Its fixed production overheads for the year amount to {fixed_overheads}. Its normal capacity, estimated by management from the average production expected over several years, is {normal_capacity} pallets. Following a drop in orders, it produced only {actual_production} pallets, an abnormally low level of production. Compute the fixed overheads included in the cost of the pallets produced and the unallocated fixed overheads.","es":""},"explanation":{"fr":"","en":"Fixed overheads are allocated on the basis of normal capacity; when production is abnormally low, the amount per unit is not increased and unallocated overheads are recognised as an expense (IAS 2, para. 13). Rate: 600,000 / 100,000 = 6 per pallet; overheads included: 80,000 × 6 = 480,000; unallocated overheads: 600,000 − 480,000 = 120,000. Normal capacity is an estimate made by Fermine, not a figure set by the standard.","es":""},"common_error":{"fr":"","en":"Including the 600,000 in the cost of 80,000 pallets.","es":""},"format":"CALCULATION","placeholders":[{"id":"fixed_overheads","value":"600000","unit":"EUR"},{"id":"normal_capacity","value":"100000","unit":"UNITS"},{"id":"actual_production","value":"80000","unit":"UNITS"}],"data":[{"label":{"fr":"","en":"Fixed production overheads","es":""},"value":"600000","unit":"EUR"},{"label":{"fr":"","en":"Normal capacity (pallets)","es":""},"value":"100000","unit":"UNITS"},{"label":{"fr":"","en":"Actual production (pallets)","es":""},"value":"80000","unit":"UNITS"}],"steps":[{"id":"ABSORBED_FIXED_OVERHEADS","label":{"fr":"","en":"Fixed overheads included in the cost of the pallets","es":""},"answer":480000,"tolerance":0,"unit":"EUR"},{"id":"UNALLOCATED_FIXED_OVERHEADS","label":{"fr":"","en":"Unallocated fixed overheads (expense of the period)","es":""},"answer":120000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"ABSORBED_FIXED_OVERHEADS","meaning":{"fr":"","en":"Fixed overheads included in the cost of the pallets","es":""},"expression":"a * (b / c)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Actual production (pallets)","es":""},"value":80000,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Fixed production overheads","es":""},"value":600000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Normal capacity (pallets)","es":""},"value":100000,"unit":"UNITS"}],"result":480000,"unit":"EUR"},{"step":"UNALLOCATED_FIXED_OVERHEADS","meaning":{"fr":"","en":"Unallocated fixed overheads (expense of the period)","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fixed production overheads","es":""},"value":600000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fixed overheads included in the cost of the pallets","es":""},"value":480000,"unit":"EUR"}],"result":120000,"unit":"EUR"}],"references":["REF.IAS2.13"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000063","standard_id":"IAS2","concept_ids":["IAS2.COST.CONVERSION"],"dimension":"CALCULATION","context":"V1_VG.IAS2.000203","tested_point":"VG.IAS2.000203","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000004","section_id":"conversion-costs"},"references":["IAS 2 §13","IAS 2 §12"],"exercise":{"prompt":{"fr":"","en":"The foundry Gravelin produces castings. For each casting, materials cost {materials_per_unit} and direct labour {direct_labour_per_unit}. Variable production overheads for the period amount to {variable_overheads} and fixed overheads to {fixed_overheads}. The normal capacity used by Gravelin is {normal_capacity} castings; a prolonged shutdown of a furnace limited actual production to {actual_production} castings, a level considered abnormally low. Compute the unit production cost of the castings and the amount of unallocated fixed overheads.","es":""},"explanation":{"fr":"","en":"The costs of conversion include direct labour and a systematic allocation of variable and fixed overheads (IAS 2, para. 12). Variable overheads are allocated on actual use: 180,000 / 45,000 = 4 per casting. Fixed overheads are allocated on normal capacity: 540,000 / 60,000 = 9 per casting, with no increase due to low production (IAS 2, para. 13). Unit cost: 12 + 8 + 4 + 9 = 33. Unallocated fixed overheads: 540,000 − 45,000 × 9 = 135,000, recognised as an expense.","es":""},"common_error":{"fr":"","en":"Dividing fixed overheads by actual production (rate of 12).","es":""},"format":"CALCULATION","placeholders":[{"id":"materials_per_unit","value":"12","unit":"EUR"},{"id":"direct_labour_per_unit","value":"8","unit":"EUR"},{"id":"variable_overheads","value":"180000","unit":"EUR"},{"id":"fixed_overheads","value":"540000","unit":"EUR"},{"id":"normal_capacity","value":"60000","unit":"UNITS"},{"id":"actual_production","value":"45000","unit":"UNITS"}],"data":[{"label":{"fr":"","en":"Materials per casting","es":""},"value":"12","unit":"EUR"},{"label":{"fr":"","en":"Direct labour per casting","es":""},"value":"8","unit":"EUR"},{"label":{"fr":"","en":"Variable production overheads","es":""},"value":"180000","unit":"EUR"},{"label":{"fr":"","en":"Fixed production overheads","es":""},"value":"540000","unit":"EUR"},{"label":{"fr":"","en":"Normal capacity (castings)","es":""},"value":"60000","unit":"UNITS"},{"label":{"fr":"","en":"Actual production (castings)","es":""},"value":"45000","unit":"UNITS"}],"steps":[{"id":"UNIT_COST","label":{"fr":"","en":"Unit production cost","es":""},"answer":33,"tolerance":0,"unit":"EUR"},{"id":"UNALLOCATED_FIXED_OVERHEADS","label":{"fr":"","en":"Unallocated fixed overheads","es":""},"answer":135000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"UNIT_COST","meaning":{"fr":"","en":"Unit production cost","es":""},"expression":"a + b + (c / d) + (e / f)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Materials per casting","es":""},"value":12,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Direct labour per casting","es":""},"value":8,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Variable production overheads","es":""},"value":180000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Actual production (castings)","es":""},"value":45000,"unit":"UNITS"},{"symbol":"e","meaning":{"fr":"","en":"Fixed production overheads","es":""},"value":540000,"unit":"EUR"},{"symbol":"f","meaning":{"fr":"","en":"Normal capacity (castings)","es":""},"value":60000,"unit":"UNITS"}],"result":33,"unit":"EUR"},{"step":"UNALLOCATED_FIXED_OVERHEADS","meaning":{"fr":"","en":"Unallocated fixed overheads","es":""},"expression":"a - b * (a / c)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fixed production overheads","es":""},"value":540000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Actual production (castings)","es":""},"value":45000,"unit":"UNITS"},{"symbol":"c","meaning":{"fr":"","en":"Normal capacity (castings)","es":""},"value":60000,"unit":"UNITS"}],"result":135000,"unit":"EUR"}],"rationale":{"fr":"","en":"The costs of conversion include direct labour and a systematic allocation of variable and fixed overheads (IAS 2, para. 12).","es":""},"references":["REF.IAS2.13","REF.IAS2.12"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000064","standard_id":"IAS2","concept_ids":["IAS2.COST.CONVERSION"],"dimension":"CALCULATION","context":"V1_VG.IAS2.000204","tested_point":"VG.IAS2.000204","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000004","section_id":"conversion-costs"},"references":["IAS 2 §13"],"exercise":{"prompt":{"fr":"","en":"The brickworks Hautmont incurs {fixed_overheads} of fixed production overheads for the year. Its normal capacity is {normal_capacity} pallets of bricks. An exceptional order for a major construction project raised production to {actual_production} pallets, an abnormally high level. All pallets produced are in inventory at the reporting date. Compute the fixed overhead to be allocated to each pallet.","es":""},"explanation":{"fr":"","en":"When production is abnormally high, the fixed overhead allocated to each unit is decreased so that inventories are not measured above cost (IAS 2, para. 13). The normal rate of 900,000 / 150,000 = 6 would include 180,000 × 6 = 1,080,000, more than the overheads actually incurred. The amount per unit is therefore reduced to 900,000 / 180,000 = 5 per pallet.","es":""},"common_error":{"fr":"","en":"Keeping the normal rate of 6 and measuring inventories above cost.","es":""},"format":"CALCULATION","placeholders":[{"id":"fixed_overheads","value":"900000","unit":"EUR"},{"id":"normal_capacity","value":"150000","unit":"UNITS"},{"id":"actual_production","value":"180000","unit":"UNITS"}],"data":[{"label":{"fr":"","en":"Fixed production overheads","es":""},"value":"900000","unit":"EUR"},{"label":{"fr":"","en":"Normal capacity (pallets)","es":""},"value":"150000","unit":"UNITS"},{"label":{"fr":"","en":"Actual production (pallets)","es":""},"value":"180000","unit":"UNITS"}],"steps":[{"id":"FIXED_OVERHEAD_PER_UNIT","label":{"fr":"","en":"Fixed overhead per pallet","es":""},"answer":5,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"FIXED_OVERHEAD_PER_UNIT","meaning":{"fr":"","en":"Fixed overhead per pallet","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fixed production overheads","es":""},"value":900000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Actual production (pallets)","es":""},"value":180000,"unit":"UNITS"}],"result":5,"unit":"EUR"}],"rationale":{"fr":"","en":"When production is abnormally high, the fixed overhead allocated to each unit is decreased so that inventories are not measured above cost (IAS 2, para. 13).","es":""},"references":["REF.IAS2.13"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000065","standard_id":"IAS2","concept_ids":["IAS2.COST.CONVERSION"],"dimension":"CALCULATION","context":"V1_VG.IAS2.000204","tested_point":"VG.IAS2.000204","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":210,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000004","section_id":"conversion-costs"},"references":["IAS 2 §13","IAS 2 §12"],"exercise":{"prompt":{"fr":"","en":"The bottle manufacturer Ivrelle worked overtime all year to meet exceptional demand. It produced {actual_production} cases, whereas its normal capacity is {normal_capacity} cases, a level management considers abnormally high. Per case, materials cost {materials_per_unit}, direct labour {direct_labour_per_unit} and variable overheads, allocated on the actual use of the facilities, {variable_overhead_per_unit}. Fixed production overheads for the year amount to {fixed_overheads}. Compute the fixed overhead per case and the unit production cost.","es":""},"explanation":{"fr":"","en":"The costs of conversion include direct costs and a systematic allocation of variable and fixed overheads (IAS 2, para. 12). Since production is abnormally high, the fixed overhead per unit is decreased so that inventories are not measured above cost (IAS 2, para. 13): 1,200,000 / 240,000 = 5 instead of 1,200,000 / 200,000 = 6. Unit cost: 14 + 6 + 3 + 5 = 28.","es":""},"common_error":{"fr":"","en":"Using the rate of 6 computed on normal capacity, giving a unit cost of 29.","es":""},"format":"CALCULATION","placeholders":[{"id":"materials_per_unit","value":"14","unit":"EUR"},{"id":"direct_labour_per_unit","value":"6","unit":"EUR"},{"id":"variable_overhead_per_unit","value":"3","unit":"EUR"},{"id":"fixed_overheads","value":"1200000","unit":"EUR"},{"id":"normal_capacity","value":"200000","unit":"UNITS"},{"id":"actual_production","value":"240000","unit":"UNITS"}],"data":[{"label":{"fr":"","en":"Materials per case","es":""},"value":"14","unit":"EUR"},{"label":{"fr":"","en":"Direct labour per case","es":""},"value":"6","unit":"EUR"},{"label":{"fr":"","en":"Variable overheads per case","es":""},"value":"3","unit":"EUR"},{"label":{"fr":"","en":"Fixed production overheads","es":""},"value":"1200000","unit":"EUR"},{"label":{"fr":"","en":"Normal capacity (cases)","es":""},"value":"200000","unit":"UNITS"},{"label":{"fr":"","en":"Actual production (cases)","es":""},"value":"240000","unit":"UNITS"}],"steps":[{"id":"FIXED_OVERHEAD_PER_UNIT","label":{"fr":"","en":"Fixed overhead per case","es":""},"answer":5,"tolerance":0,"unit":"EUR"},{"id":"UNIT_COST","label":{"fr":"","en":"Unit production cost","es":""},"answer":28,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"FIXED_OVERHEAD_PER_UNIT","meaning":{"fr":"","en":"Fixed overhead per case","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fixed production overheads","es":""},"value":1200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Actual production (cases)","es":""},"value":240000,"unit":"UNITS"}],"result":5,"unit":"EUR","rationale":{"fr":"","en":"Since production is abnormally high, the fixed overhead per unit is decreased so that inventories are not measured above cost (IAS 2, para. 13): 1,200,000 / 240,000 = 5 instead of 1,200,000 / 200,000 = 6.","es":""}},{"step":"UNIT_COST","meaning":{"fr":"","en":"Unit production cost","es":""},"expression":"a + b + c + d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Materials per case","es":""},"value":14,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Direct labour per case","es":""},"value":6,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Variable overheads per case","es":""},"value":3,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Fixed overhead per case","es":""},"value":5,"unit":"EUR"}],"result":28,"unit":"EUR"}],"references":["REF.IAS2.13","REF.IAS2.12"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000068","standard_id":"IAS2","concept_ids":["IAS2.COST.CONVERSION"],"dimension":"APPLICATION","context":"V1_QST.IAS2.000068","tested_point":"QST.IAS2.000068","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000004","section_id":"conversion-costs"},"references":["IAS 2 §14"],"exercise":{"prompt":{"fr":"","en":"Lavéra processes an ore from which a single process simultaneously extracts two joint products, Alpha and Beta; the costs of conversion of each product are not separately identifiable. The joint costs up to the split-off point amount to 600,000. At the split-off point, Lavéra obtains 4,000 tonnes of Alpha, saleable at 150 per tonne, and 6,000 tonnes of Beta, saleable at 50 per tonne. Its accounting policy, applied consistently, allocates the joint costs on the basis of the relative sales value at the split-off point. What cost is allocated to the Alpha inventory?","es":""},"explanation":{"fr":"","en":"When the costs of conversion of joint products are not separately identifiable, they are allocated on a rational and consistent basis, for example the relative sales value at the split-off point (IAS 2, para. 14). IAS 2 requires a rational and consistent basis but does not impose a specific one: relative sales value is Lavéra's accounting policy. Sales values: Alpha 4,000 × 150 = 600,000; Beta 6,000 × 50 = 300,000. Share of Alpha: 600,000 × 600,000 / 900,000 = 400,000; Beta receives 200,000.","es":""},"common_error":{"fr":"","en":"Applying an allocation basis different from the policy documented by the entity.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"240,000, based on Alpha's share of the tonnage produced at the split-off point.","es":""},"correct":false,"feedback":{"fr":"","en":"An allocation on physical quantities may be rational, but the policy adopted and applied by Lavéra is relative sales value.","es":""}},{"id":"B","text":{"fr":"","en":"400,000, based on Alpha's share of the total sales value.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"300,000, by splitting the joint costs equally between the two products.","es":""},"correct":false,"feedback":{"fr":"","en":"An equal split does not match Lavéra's policy and reflects no characteristic of the products.","es":""}},{"id":"D","text":{"fr":"","en":"600,000, Alpha being the most profitable product and Beta a by-product with no cost.","es":""},"correct":false,"feedback":{"fr":"","en":"Beta, which accounts for one third of the sales value, is not an immaterial by-product.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000069","standard_id":"IAS2","concept_ids":["IAS2.COST.CONVERSION","IAS2.COST.OTHER_AND_EXCLUDED"],"dimension":"CALCULATION","context":"V1_QST.IAS2.000069","tested_point":"QST.IAS2.000069","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000004","section_id":"conversion-costs"},"references":["IAS 2 §14","IAS 2 §16"],"exercise":{"prompt":{"fr":"","en":"The cheese maker Mirandol produces {main_units} cheese wheels, its main product; the same process generates whey, an immaterial by-product. The process costs for the period amount to {process_costs}, of which {abnormal_loss} relates to milk lost following a refrigeration failure, a loss considered abnormal. Mirandol measures the whey at its net realisable value, estimated at {byproduct_nrv}, and deducts that amount from the cost of the main product. Compute the total cost of the cheese wheels and their unit cost.","es":""},"explanation":{"fr":"","en":"Abnormal amounts of wasted materials are excluded from the cost of inventories and recognised as expenses (IAS 2, para. 16). The immaterial by-product is measured at net realisable value, deducted from the cost of the main product (IAS 2, para. 14). Cost of the wheels: 495,000 − 15,000 − 30,000 = 450,000; unit cost: 450,000 / 20,000 = 22.5. The net realisable value of the whey is a datum of the case.","es":""},"common_error":{"fr":"","en":"Leaving the abnormal loss in the cost of the wheels.","es":""},"format":"CALCULATION","placeholders":[{"id":"process_costs","value":"495000","unit":"EUR"},{"id":"abnormal_loss","value":"15000","unit":"EUR"},{"id":"byproduct_nrv","value":"30000","unit":"EUR"},{"id":"main_units","value":"20000","unit":"UNITS"}],"data":[{"label":{"fr":"","en":"Process costs for the period","es":""},"value":"495000","unit":"EUR"},{"label":{"fr":"","en":"Milk lost (abnormal loss)","es":""},"value":"15000","unit":"EUR"},{"label":{"fr":"","en":"Net realisable value of the whey","es":""},"value":"30000","unit":"EUR"},{"label":{"fr":"","en":"Number of wheels produced","es":""},"value":"20000","unit":"UNITS"}],"steps":[{"id":"MAIN_PRODUCT_COST","label":{"fr":"","en":"Total cost of the wheels","es":""},"answer":450000,"tolerance":0,"unit":"EUR"},{"id":"UNIT_COST","label":{"fr":"","en":"Unit cost of a wheel","es":""},"answer":22.5,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"MAIN_PRODUCT_COST","meaning":{"fr":"","en":"Total cost of the wheels","es":""},"expression":"a - b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Process costs for the period","es":""},"value":495000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Milk lost (abnormal loss)","es":""},"value":15000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Net realisable value of the whey","es":""},"value":30000,"unit":"EUR"}],"result":450000,"unit":"EUR"},{"step":"UNIT_COST","meaning":{"fr":"","en":"Unit cost of a wheel","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Total cost of the wheels","es":""},"value":450000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Number of wheels produced","es":""},"value":20000,"unit":"UNITS"}],"result":22.5,"unit":"EUR"}],"rationale":{"fr":"","en":"Abnormal amounts of wasted materials are excluded from the cost of inventories and recognised as expenses (IAS 2, para. 16).","es":""},"references":["REF.IAS2.14","REF.IAS2.16"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000070","standard_id":"IAS2","concept_ids":["IAS2.COST.CONVERSION"],"dimension":"ANALYSIS","context":"V1_QST.IAS2.000070","tested_point":"QST.IAS2.000070","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000004","section_id":"conversion-costs"},"references":["IAS 2 §13"],"exercise":{"prompt":{"fr":"","en":"Noirmont incurs 400,000 of fixed production overheads. Its normal capacity is 80,000 units, but a prolonged shutdown of a line due to a breakdown limited production to 50,000 units, an abnormally low level. The management controller included all fixed overheads in the cost of the units produced, at 8 per unit. What is the error?","es":""},"explanation":{"fr":"","en":"Fixed overheads are allocated on the basis of normal capacity; when production is abnormally low, the amount per unit is not increased and unallocated overheads are recognised as an expense (IAS 2, para. 13). Correct rate: 400,000 / 80,000 = 5; overheads included: 50,000 × 5 = 250,000; expense for the period: 150,000.","es":""},"common_error":{"fr":"","en":"Allocating all fixed overheads to a low production.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No error: all fixed overheads must be absorbed by actual production.","es":""},"correct":false,"feedback":{"fr":"","en":"When production is low, the fixed overhead per unit is not increased: actual production does not absorb all fixed overheads.","es":""}},{"id":"B","text":{"fr":"","en":"The rate should have been 5 per unit, computed on normal capacity, and 150,000 of unallocated overheads should have been expensed.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Fixed overheads should have been fully expensed, because only variable overheads are included in inventories when production is abnormally low.","es":""},"correct":false,"feedback":{"fr":"","en":"Fixed overheads are still allocated on the basis of normal capacity; only the unallocated portion is expensed.","es":""}},{"id":"D","text":{"fr":"","en":"The rate should have been computed on the maximum capacity of the facilities, well above 80,000 units, in order to reduce the unit cost of inventories.","es":""},"correct":false,"feedback":{"fr":"","en":"Normal capacity is the average production expected under normal circumstances, not a maximum capacity.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000071","standard_id":"IAS2","concept_ids":["IAS2.COST.OTHER_AND_EXCLUDED"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000071","tested_point":"QST.IAS2.000071","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000005","section_id":"other-costs"},"references":["IAS 2 §16"],"exercise":{"prompt":{"fr":"","en":"The commissions paid to Ombreval's sales staff to sell its finished goods are included in the cost of these inventories.","es":""},"explanation":{"fr":"","en":"Selling costs are excluded from the cost of inventories and recognised as expenses in the period (IAS 2, para. 16). Sales commissions are incurred to sell the products, not to bring them to their present location and condition.","es":""},"common_error":{"fr":"","en":"Including selling costs in the cost of inventories.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000072","standard_id":"IAS2","concept_ids":["IAS2.COST.OTHER_AND_EXCLUDED"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000072","tested_point":"QST.IAS2.000072","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000005","section_id":"other-costs"},"references":["IAS 2 §16"],"exercise":{"prompt":{"fr":"","en":"At Palmyre, an incorrect press setting caused an abnormal loss of materials. The cost of this loss is recognised as an expense in the period and not included in the cost of inventories.","es":""},"explanation":{"fr":"","en":"Abnormal amounts of wasted materials, labour or other production costs are excluded from the cost of inventories and recognised as expenses in the period (IAS 2, para. 16).","es":""},"common_error":{"fr":"","en":"Including an abnormal loss in the cost of the goods manufactured.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000073","standard_id":"IAS2","concept_ids":["IAS2.COST.OTHER_AND_EXCLUDED"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000073","tested_point":"QST.IAS2.000073","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000005","section_id":"other-costs"},"references":["IAS 2"],"exercise":{"prompt":{"fr":"","en":"To know whether borrowing costs may be included in the cost of its inventories, Quimperlé must refer to IAS 23, which identifies the limited circumstances in which they are included.","es":""},"explanation":{"fr":"","en":"IAS 2 does not itself deal with borrowing costs: it refers to IAS 23, which identifies the limited circumstances in which these costs are included in the cost of inventories (IAS 2, para. 17). The conditions of IAS 23 are not tested here.","es":""},"common_error":{"fr":"","en":"Thinking that IAS 2 always prohibits the inclusion of borrowing costs.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000074","standard_id":"IAS2","concept_ids":["IAS2.COST.OTHER_AND_EXCLUDED"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000074","tested_point":"QST.IAS2.000074","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":70,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000005","section_id":"other-costs"},"references":["IAS 2 §16"],"exercise":{"prompt":{"fr":"","en":"The cheese maker Quérigny ripens its cheeses in a cellar; according to its process, ripening is a necessary stage of production, before the final packaging stage. Once packaged, the cheeses are kept in a refrigerated warehouse until they are sold. How should these two storage costs be treated?","es":""},"explanation":{"fr":"","en":"Storage costs are excluded from the cost of inventories, unless they are necessary in the production process before a further production stage (IAS 2, para. 16). Storage in the ripening cellar, described by the case as a necessary stage before packaging, is included; storage of the packaged goods awaiting sale is recognised as an expense.","es":""},"common_error":{"fr":"","en":"Including in the cost of inventories storage costs between the end of production and the sale.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Both costs are included, because they keep the cheeses in good condition.","es":""},"correct":false,"feedback":{"fr":"","en":"Storage is included only if it is necessary in the production process before a further stage, which is not the case for storage awaiting sale.","es":""}},{"id":"B","text":{"fr":"","en":"Storage in the ripening cellar is included; storage after packaging is expensed.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Both costs are expensed, because a storage cost is never included in the cost of inventories, whatever its purpose.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 2 provides an exception for storage necessary in the production process before a further stage.","es":""}},{"id":"D","text":{"fr":"","en":"Only storage after packaging is included, because it directly precedes the sale.","es":""},"correct":false,"feedback":{"fr":"","en":"It is the opposite: storage awaiting sale is excluded, storage necessary for production is included.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000075","standard_id":"IAS2","concept_ids":["IAS2.COST.OTHER_AND_EXCLUDED"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000075","tested_point":"QST.IAS2.000075","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000005","section_id":"other-costs"},"references":["IAS 2","IAS 2 §16"],"exercise":{"prompt":{"fr":"","en":"Rosmarin manufactures packaging machines. For an order from a particular customer, its engineers design a bespoke machine, which is in production at the reporting date. Which of the following costs may it be appropriate to include in the cost of this inventory item?","es":""},"explanation":{"fr":"","en":"Other costs are included only to the extent that they are incurred in bringing the inventories to their present location and condition; it may thus be appropriate to include the costs of designing products for specific customers (IAS 2, para. 15). Advertising, administrative costs unrelated to manufacturing and storage of finished goods awaiting sale are excluded (IAS 2, para. 16).","es":""},"common_error":{"fr":"","en":"Systematically excluding all design costs from the cost of inventories.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The costs of designing the machine incurred for this customer.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The costs of the advertising campaign presenting the range of machines at a trade fair.","es":""},"correct":false,"feedback":{"fr":"","en":"Advertising is a selling cost, excluded from the cost of inventories.","es":""}},{"id":"C","text":{"fr":"","en":"The costs of the group legal department, which plays no part in manufacturing.","es":""},"correct":false,"feedback":{"fr":"","en":"Administrative costs that do not contribute to bringing inventories to their present condition are excluded.","es":""}},{"id":"D","text":{"fr":"","en":"Storage of finished standard machines awaiting sale.","es":""},"correct":false,"feedback":{"fr":"","en":"Storage of finished goods awaiting sale is not necessary for production: it is excluded.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000076","standard_id":"IAS2","concept_ids":["IAS2.COST.OTHER_AND_EXCLUDED","IAS2.COST.CONVERSION","IAS2.COST.PURCHASE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000076","tested_point":"QST.IAS2.000076","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000003","section_id":"cost-components"},"references":["IAS 2 §16","IAS 2 §12","IAS 2 §11"],"exercise":{"prompt":{"fr":"","en":"Sorbier manufactures cosmetics. Which of the following costs must be recognised as expenses in the period rather than included in the cost of its inventories?","es":""},"explanation":{"fr":"","en":"The following are excluded from the cost of inventories and recognised as expenses: abnormal amounts of wasted materials, storage costs not necessary in the production process, administrative overheads that do not contribute to bringing inventories to their present location and condition, and selling costs (IAS 2, para. 16). Direct labour is part of the costs of conversion (IAS 2, para. 12) and transport of materials to the factory is part of the costs of purchase (IAS 2, para. 11).","es":""},"common_error":{"fr":"","en":"Including storage costs awaiting sale or selling costs.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The wages of the production line operators.","es":""},"correct":false,"feedback":{"fr":"","en":"Line operators are direct labour, an element of the costs of conversion.","es":""}},{"id":"B","text":{"fr":"","en":"The advertising campaign launching the products.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Storage of finished goods in the distribution warehouse awaiting sale.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Transport of raw materials to the factory.","es":""},"correct":false,"feedback":{"fr":"","en":"Transport of materials to the factory is part of the costs of purchase.","es":""}},{"id":"E","text":{"fr":"","en":"An abnormal quantity of materials wasted during a breakdown of the line.","es":""},"correct":true},{"id":"F","text":{"fr":"","en":"The costs of the head office accounting department.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000077","standard_id":"IAS2","concept_ids":["IAS2.COST.OTHER_AND_EXCLUDED"],"dimension":"CALCULATION","context":"V1_VG.IAS2.000206","tested_point":"VG.IAS2.000206","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000005","section_id":"other-costs"},"references":["IAS 2 §18"],"exercise":{"prompt":{"fr":"","en":"On 1 January 20X1, Nolvène buys an inventory of steel sheets. The supplier charges a price of {price_normal_terms} for settlement on normal credit terms; Nolvène obtains the right to pay {amount_paid} on 31 December 20X1. This deferral effectively contains a financing element. Compute the cost of the steel sheets and the interest expense to be recognised over the period of the financing.","es":""},"explanation":{"fr":"","en":"When inventories are purchased on deferred settlement terms that effectively contain a financing element, that element, here the difference between the purchase price for normal credit terms and the amount paid, is recognised as interest expense over the period of the financing (IAS 2, para. 18). Cost of the sheets: 100,000; interest expense: 106,000 − 100,000 = 6,000.","es":""},"common_error":{"fr":"","en":"Recognising the inventory at 106,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"price_normal_terms","value":"100000","unit":"EUR"},{"id":"amount_paid","value":"106000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Purchase price for normal credit terms","es":""},"value":"100000","unit":"EUR"},{"label":{"fr":"","en":"Amount paid on deferred terms","es":""},"value":"106000","unit":"EUR"}],"steps":[{"id":"COST_OF_INVENTORY","label":{"fr":"","en":"Cost of the steel sheets","es":""},"answer":100000,"tolerance":0,"unit":"EUR"},{"id":"INTEREST_EXPENSE","label":{"fr":"","en":"Interest expense over the period of the financing","es":""},"answer":6000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"INTEREST_EXPENSE","meaning":{"fr":"","en":"Interest expense over the period of the financing","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Amount paid on deferred terms","es":""},"value":106000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Purchase price for normal credit terms","es":""},"value":100000,"unit":"EUR"}],"result":6000,"unit":"EUR"}],"rationale":{"fr":"","en":"When inventories are purchased on deferred settlement terms that effectively contain a financing element, that element, here the difference between the purchase price for normal credit terms and the amount paid, is recognised as interest expense over the period of the financing (IAS 2, para. 18).","es":""},"references":["REF.IAS2.18"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000078","standard_id":"IAS2","concept_ids":["IAS2.COST.OTHER_AND_EXCLUDED"],"dimension":"CALCULATION","context":"V1_VG.IAS2.000206","tested_point":"VG.IAS2.000206","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000005","section_id":"other-costs"},"references":["IAS 2 §18"],"exercise":{"prompt":{"fr":"","en":"Orbelle, a hardware wholesaler, buys {units} drills. For cash or at 30 days, the supplier's normal credit terms, each drill costs {unit_price_normal_terms}. Orbelle chooses an offer of a single payment of {total_amount_payable} in {financing_period} months, which effectively contains a financing element. Compute the cost of the drills to be recognised in inventory and the financing element to be recognised as interest expense over the period of the financing.","es":""},"explanation":{"fr":"","en":"For deferred settlement terms that effectively contain a financing element, that element, measured as the difference between the purchase price for normal credit terms and the amount paid, is recognised as interest expense over the period of the financing (IAS 2, para. 18). Cost: 400 × 75 = 30,000; financing element: 33,600 − 30,000 = 3,600, spread over the months of financing.","es":""},"common_error":{"fr":"","en":"Recognising the inventory at 33,600, that is 84 per drill.","es":""},"format":"CALCULATION","placeholders":[{"id":"units","value":"400","unit":"UNITS"},{"id":"unit_price_normal_terms","value":"75","unit":"EUR"},{"id":"total_amount_payable","value":"33600","unit":"EUR"},{"id":"financing_period","value":"18","unit":"MONTHS"}],"data":[{"label":{"fr":"","en":"Number of drills","es":""},"value":"400","unit":"UNITS"},{"label":{"fr":"","en":"Unit price for normal credit terms","es":""},"value":"75","unit":"EUR"},{"label":{"fr":"","en":"Total amount payable on deferred terms","es":""},"value":"33600","unit":"EUR"},{"label":{"fr":"","en":"Deferral period","es":""},"value":"18","unit":"MONTHS"}],"steps":[{"id":"COST_OF_INVENTORY","label":{"fr":"","en":"Cost of the drills in inventory","es":""},"answer":30000,"tolerance":0,"unit":"EUR"},{"id":"FINANCING_ELEMENT","label":{"fr":"","en":"Financing element (interest expense)","es":""},"answer":3600,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"COST_OF_INVENTORY","meaning":{"fr":"","en":"Cost of the drills in inventory","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Number of drills","es":""},"value":400,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Unit price for normal credit terms","es":""},"value":75,"unit":"EUR"}],"result":30000,"unit":"EUR"},{"step":"FINANCING_ELEMENT","meaning":{"fr":"","en":"Financing element (interest expense)","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Total amount payable on deferred terms","es":""},"value":33600,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Cost of the drills in inventory","es":""},"value":30000,"unit":"EUR"}],"result":3600,"unit":"EUR"}],"rationale":{"fr":"","en":"For deferred settlement terms that effectively contain a financing element, that element, measured as the difference between the purchase price for normal credit terms and the amount paid, is recognised as interest expense over the period of the financing (IAS 2, para. 18).","es":""},"references":["REF.IAS2.18"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000081","standard_id":"IAS2","concept_ids":["IAS2.COST.OTHER_AND_EXCLUDED"],"dimension":"ANALYSIS","context":"V1_QST.IAS2.000081","tested_point":"QST.IAS2.000081","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000005","section_id":"other-costs"},"references":["IAS 2 §16"],"exercise":{"prompt":{"fr":"","en":"Tavernay manufactures garden furniture. At the reporting date, the carrying amount of its finished goods inventory, 300,000, includes 18,000 of rent for the warehouse where the finished furniture awaits sale. What is the error?","es":""},"explanation":{"fr":"","en":"Storage costs are excluded from the cost of inventories, unless they are necessary in the production process before a further production stage (IAS 2, para. 16). The rent of the warehouse holding finished goods awaiting sale does not meet that condition: the 18,000 must be recognised as an expense and the inventory reduced to 282,000.","es":""},"common_error":{"fr":"","en":"Including in the cost of inventories storage costs incurred between the end of production and the sale.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The rent of the finished goods warehouse was included in the cost of inventories whereas it should have been expensed.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The costs of conversion for the period should have been expensed, only purchases of materials being includable in the cost of finished goods.","es":""},"correct":false,"feedback":{"fr":"","en":"The costs of conversion are part of the cost of finished goods; the error concerns storage.","es":""}},{"id":"C","text":{"fr":"","en":"No error: any cost incurred before the sale is part of the cost of inventories.","es":""},"correct":false,"feedback":{"fr":"","en":"Only costs incurred in bringing inventories to their present location and condition are included; storage awaiting sale is excluded.","es":""}},{"id":"D","text":{"fr":"","en":"The rent should indeed have been included, but in the cost of raw materials rather than in that of finished goods.","es":""},"correct":false,"feedback":{"fr":"","en":"This rent is not a production cost, whichever inventory one would like to attach it to.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000082","standard_id":"IAS2","concept_ids":["IAS2.COST.OTHER_AND_EXCLUDED"],"dimension":"ANALYSIS","context":"V1_QST.IAS2.000082","tested_point":"QST.IAS2.000082","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000005","section_id":"other-costs"},"references":["IAS 2 §18"],"exercise":{"prompt":{"fr":"","en":"Ulmière buys spare parts, payable 110,000 in 24 months; the supplier's price for settlement on normal credit terms is 100,000. The deferral effectively contains a financing element. Ulmière recognises the inventory at 110,000. What is the error?","es":""},"explanation":{"fr":"","en":"The financing element of a purchase on deferred settlement terms, here the difference of 10,000 between the price for normal credit terms and the amount paid, is recognised as interest expense over the period of the financing (IAS 2, para. 18). The inventory must be recognised at 100,000.","es":""},"common_error":{"fr":"","en":"Including in cost the price premium paid for deferred settlement.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The inventory should have been recognised at 100,000, the difference of 10,000 being interest expense spread over the period of the financing.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"No error: the costs of purchase equal the total amount actually paid to the supplier.","es":""},"correct":false,"feedback":{"fr":"","en":"The extra amount paid for deferred settlement is a financing element, not an element of cost.","es":""}},{"id":"C","text":{"fr":"","en":"The inventory should have been recognised at 100,000, and the difference of 10,000 expensed in full at the purchase date, since it does not pay for the parts.","es":""},"correct":false,"feedback":{"fr":"","en":"The inventory amount is right, but the interest expense is recognised over the period of the financing, not in full on purchase.","es":""}},{"id":"D","text":{"fr":"","en":"The inventory should have been recognised at 99,000, after a 10% markdown for deferred payment.","es":""},"correct":false,"feedback":{"fr":"","en":"Cost is the price for normal credit terms, that is 100,000, not an amount obtained by an arbitrary markdown.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000083","standard_id":"IAS2","concept_ids":["IAS2.COST.OTHER_AND_EXCLUDED","IAS2.COST.CONVERSION"],"dimension":"APPLICATION","context":"V1_QST.IAS2.000083","tested_point":"QST.IAS2.000083","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000004","section_id":"conversion-costs"},"references":["IAS 2","IAS 2 §16","IAS 2 §12"],"exercise":{"prompt":{"fr":"","en":"Rivaldi manufactures, for a particular hotel, a set of furniture designed specifically for it; the order is in progress at the reporting date. Costs incurred: materials used 40,000; direct labour 25,000; production overheads allocated 15,000; design of the furniture for this hotel 6,000; wood wasted through a faulty setting, a loss considered abnormal, 3,000; commercial presentation to other hoteliers 2,000; storage of finished pieces not necessary for the rest of the manufacturing 1,000. Rivaldi considers that these design costs help bring the order to its present condition. What is the cost of the inventory at the reporting date?","es":""},"explanation":{"fr":"","en":"Cost includes materials, direct labour and production overheads (IAS 2, para. 12), as well as the costs of designing a product for a specific customer, which it may be appropriate to include (IAS 2, para. 15). The abnormal loss, the commercial presentation and storage not necessary for production are excluded (IAS 2, para. 16). Cost: 40,000 + 25,000 + 15,000 + 6,000 = 86,000.","es":""},"common_error":{"fr":"","en":"Including selling or storage costs.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"86,000: materials, labour, production overheads and design.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"80,000: design costs are never included in the cost of inventories.","es":""},"correct":false,"feedback":{"fr":"","en":"It may be appropriate to include the costs of designing products for specific customers.","es":""}},{"id":"C","text":{"fr":"","en":"89,000: the wasted wood is part of the production cost of the order.","es":""},"correct":false,"feedback":{"fr":"","en":"An abnormal loss of materials is excluded from cost and recognised as an expense.","es":""}},{"id":"D","text":{"fr":"","en":"92,000: all costs incurred for this order are included until it is delivered to the customer.","es":""},"correct":false,"feedback":{"fr":"","en":"The abnormal loss, the commercial presentation and unnecessary storage are excluded from cost.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000084","standard_id":"IAS2","concept_ids":["IAS2.COST.OTHER_AND_EXCLUDED","IAS2.COST.CONVERSION"],"dimension":"APPLICATION","context":"V1_QST.IAS2.000084","tested_point":"QST.IAS2.000084","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000004","section_id":"conversion-costs"},"references":["IAS 2 §16","IAS 2 §12"],"exercise":{"prompt":{"fr":"","en":"Sorlan incurs two administrative costs: 90,000 for the management and administration team of its factory, and 140,000 for the group finance department, which plays no part in production. How should these costs be treated in measuring inventories?","es":""},"explanation":{"fr":"","en":"Factory management and administration costs are fixed production overheads, allocated systematically to the costs of conversion (IAS 2, para. 12). Administrative overheads that do not contribute to bringing inventories to their present location and condition are excluded and recognised as expenses (IAS 2, para. 16).","es":""},"common_error":{"fr":"","en":"Systematically excluding any cost labelled administrative.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Both costs are excluded from the cost of inventories, because they are administrative costs.","es":""},"correct":false,"feedback":{"fr":"","en":"Factory administration is a fixed production overhead, to be allocated to the costs of conversion.","es":""}},{"id":"B","text":{"fr":"","en":"The factory's 90,000 is a fixed production overhead allocated to inventories; the 140,000 is expensed.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Both costs are included, because the group finance department benefits the whole activity of the entity, including the factory's production.","es":""},"correct":false,"feedback":{"fr":"","en":"Administrative costs that do not contribute to bringing inventories to their present condition are excluded, even if they indirectly benefit production.","es":""}},{"id":"D","text":{"fr":"","en":"The finance department's 140,000 is included, the factory's 90,000 being expensed.","es":""},"correct":false,"feedback":{"fr":"","en":"It is the opposite: factory administration is included, the group finance department is expensed.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000085","standard_id":"IAS2","concept_ids":["IAS2.COST.AGRICULTURAL_PRODUCE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000085","tested_point":"QST.IAS2.000085","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000001","section_id":"harvested-produce"},"references":["IAS 2 §20"],"exercise":{"prompt":{"fr":"","en":"Vergers du Lac harvests apples from its own orchards and classifies them as inventories pending their sale. On initial recognition, the apples are measured at their fair value less costs to sell at the point of harvest, and that amount is their cost for the purposes of IAS 2.","es":""},"explanation":{"fr":"","en":"Inventories of agricultural produce harvested from the entity's biological assets are measured on initial recognition, in accordance with IAS 41, at fair value less costs to sell at the point of harvest; that amount becomes their cost under IAS 2 (IAS 2, para. 20). The determination of that fair value falls under IAS 41 and is not tested here.","es":""},"common_error":{"fr":"","en":"Using accumulated cultivation expenditure as cost.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000086","standard_id":"IAS2","concept_ids":["IAS2.COST.AGRICULTURAL_PRODUCE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000086","tested_point":"QST.IAS2.000086","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000001","section_id":"harvested-produce"},"references":["IAS 2 §20"],"exercise":{"prompt":{"fr":"","en":"Agricole des Trois Chênes harvests wheat from its own crops on 20 July 20X1 and stores it in a silo pending its sale. At the point of harvest, the fair value of the wheat less costs to sell amounts to 80,000. At 31 December 20X1, that same amount would be 95,000 because market prices have risen. The entity applies the measurement requirements of IAS 2 to this inventory (case data). Which amount is the cost of the wheat under IAS 2?","es":""},"explanation":{"fr":"","en":"Wheat harvested from the entity's crops is measured on initial recognition at fair value less costs to sell at the point of harvest, which becomes its cost under IAS 2 (IAS 2, para. 20). Cost is therefore 80,000; the rise in prices after harvest does not remeasure the inventory.","es":""},"common_error":{"fr":"","en":"Remeasuring harvested produce at fair value at each reporting date.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"95,000, because cost follows fair value less costs to sell until the wheat is sold.","es":""},"correct":false,"feedback":{"fr":"","en":"Cost is fixed at the point of harvest: a later rise in prices does not lead to remeasuring the inventory at fair value.","es":""}},{"id":"B","text":{"fr":"","en":"80,000, the amount determined at the point of harvest.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The accumulated cultivation costs incurred since sowing, whatever their amount.","es":""},"correct":false,"feedback":{"fr":"","en":"For harvested agricultural produce, cost is not accumulated cultivation expenditure but fair value less costs to sell at harvest.","es":""}},{"id":"D","text":{"fr":"","en":"No cost: the harvested wheat stays outside IAS 2 and continues to be measured under IAS 41 until sold.","es":""},"correct":false,"feedback":{"fr":"","en":"Once harvested and classified as inventories, the wheat falls under IAS 2; IAS 41 only provides the initial amount that becomes its cost.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000087","standard_id":"IAS2","concept_ids":["IAS2.COST.AGRICULTURAL_PRODUCE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000087","tested_point":"QST.IAS2.000087","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":70,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000001","section_id":"harvested-produce"},"references":["IAS 2 §20"],"exercise":{"prompt":{"fr":"","en":"Oliveraies de Montbrun harvests olives from its own trees and classifies them as inventories. At the point of harvest, the fair value of the harvested olives, determined under IAS 41, is 52,000 and costs to sell are estimated at 3,000. Cultivation costs incurred during the season amount to 31,000. At what amount do the olives enter inventories?","es":""},"explanation":{"fr":"","en":"The harvested olives are measured on initial recognition at fair value less costs to sell at the point of harvest: 52,000 − 3,000 = 49,000, which is their cost under IAS 2 (IAS 2, para. 20). The cultivation costs of 31,000 do not determine that cost.","es":""},"common_error":{"fr":"","en":"Forgetting to deduct costs to sell.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"52,000 (fair value at harvest)","es":""},"correct":false,"feedback":{"fr":"","en":"The costs to sell of 3,000 must be deducted from fair value.","es":""}},{"id":"B","text":{"fr":"","en":"31,000 (cultivation costs of the season)","es":""},"correct":false,"feedback":{"fr":"","en":"For harvested produce, cost is not the accumulated cultivation costs.","es":""}},{"id":"C","text":{"fr":"","en":"49,000 (fair value less costs to sell)","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"28,000 (cultivation costs of the season less estimated costs to sell)","es":""},"correct":false,"feedback":{"fr":"","en":"This mixes two bases: costs to sell are deducted from fair value, not from cultivation costs.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000088","standard_id":"IAS2","concept_ids":["IAS2.COST.MEASUREMENT_TECHNIQUES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000088","tested_point":"QST.IAS2.000088","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000006","section_id":"techniques-rule"},"references":["IAS 2 §21"],"exercise":{"prompt":{"fr":"","en":"Plasturgie du Vercors measures its finished goods using the standard cost method. This technique is permitted for convenience if its results approximate cost, and the standards must be regularly reviewed and revised where necessary.","es":""},"explanation":{"fr":"","en":"IAS 2 permits, for convenience, cost measurement techniques such as the standard cost method, provided their results approximate cost; standards are based on normal levels of consumption, efficiency and capacity utilisation, and are regularly reviewed (IAS 2, para. 21).","es":""},"common_error":{"fr":"","en":"Assuming that a standard cost set once and for all remains acceptable.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000089","standard_id":"IAS2","concept_ids":["IAS2.COST.MEASUREMENT_TECHNIQUES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000089","tested_point":"QST.IAS2.000089","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000006","section_id":"techniques-rule"},"references":["IAS 2 §21"],"exercise":{"prompt":{"fr":"","en":"Ferronnerie Valmont sets standard costs for its steel gates, which it uses to measure its finished goods inventories. On what basis must those standards be set?","es":""},"explanation":{"fr":"","en":"Standard costs are based on normal levels of materials and supplies, labour, efficiency and capacity utilisation; they are regularly reviewed and revised where necessary (IAS 2, para. 21). Ideal levels, future budgets or a selling price do not give a result that approximates cost.","es":""},"common_error":{"fr":"","en":"Setting theoretical standards that are never achieved.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"On normal levels of materials, labour, efficiency and capacity utilisation.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"On ideal performance achievable without any stoppage or scrap, to motivate production teams to improve.","es":""},"correct":false,"feedback":{"fr":"","en":"Ideal performance would understate cost: the standard refers to normal levels.","es":""}},{"id":"C","text":{"fr":"","en":"On the budgeted costs of the following year, since the gates in stock will be sold during that year.","es":""},"correct":false,"feedback":{"fr":"","en":"The cost of inventories reflects costs already incurred under normal conditions, not a future budget.","es":""}},{"id":"D","text":{"fr":"","en":"On the list selling price less the average gross margin observed in the metalwork sector.","es":""},"correct":false,"feedback":{"fr":"","en":"This approach resembles the retail method, used in retailing, not a standard production cost.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000090","standard_id":"IAS2","concept_ids":["IAS2.COST.MEASUREMENT_TECHNIQUES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000090","tested_point":"QST.IAS2.000090","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000006","section_id":"techniques-rule"},"references":["IAS 2 §21","IAS 2 §22"],"exercise":{"prompt":{"fr":"","en":"Comptoirs Sauvelin, a chain of convenience stores, is considering measuring its inventories using the retail method. Which statements are correct?","es":""},"explanation":{"fr":"","en":"The retail method, common in retailing for large numbers of rapidly changing items with similar margins, deducts the appropriate gross margin percentage from the sales value of the inventory; that percentage takes into account items marked down, and an average percentage for each retail department is often used (IAS 2, para. 22). Like any convenience technique, it is permitted only if its results approximate cost (IAS 2, para. 21).","es":""},"common_error":{"fr":"","en":"Forgetting that the method must give a result that approximates cost.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It determines cost by adding a standard gross margin to the purchase price.","es":""},"correct":false,"feedback":{"fr":"","en":"The method starts from sales value and deducts the gross margin; it adds nothing to the purchase price.","es":""}},{"id":"B","text":{"fr":"","en":"It is widely used by retailers holding many fast-moving items with comparable margins.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It may be used even if its results differ significantly from cost, since the standard mentions it expressly.","es":""},"correct":false,"feedback":{"fr":"","en":"Being mentioned in the standard does not remove the condition: the result must approximate cost.","es":""}},{"id":"D","text":{"fr":"","en":"The gross margin percentage applied takes into account items marked down below their original selling price.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"An average percentage for each retail department is often used.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000091","standard_id":"IAS2","concept_ids":["IAS2.COST.MEASUREMENT_TECHNIQUES"],"dimension":"CALCULATION","context":"V1_VG.IAS2.000301","tested_point":"VG.IAS2.000301","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000006","section_id":"techniques-rule"},"references":["IAS 2 §22","IAS 2 §21"],"exercise":{"prompt":{"fr":"","en":"The DIY store Bazar Ondine applies the retail method to its tools department, whose items turn over quickly and have similar margins. At 31 December 20X1, the counted inventory is valued at {retail_value} at the displayed selling prices. The appropriate gross margin percentage of the department, which takes into account items marked down, is {gross_margin} of the selling price (case data). The method is assumed to give a result that approximates cost. Calculate the cost of the department's inventory.","es":""},"explanation":{"fr":"","en":"The retail method determines cost by deducting the appropriate gross margin percentage from the sales value of the inventory (IAS 2, para. 22): 240,000 × (100% − 35%) = 156,000. The 35% percentage is data provided by the entity; the method is permitted only if its result approximates cost (IAS 2, para. 21).","es":""},"common_error":{"fr":"","en":"Dividing the sales value by 1.35 as if the margin were expressed on cost.","es":""},"format":"CALCULATION","placeholders":[{"id":"retail_value","value":"240000","unit":"EUR"},{"id":"gross_margin","value":"35","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Inventory value at selling prices","es":""},"value":"240000","unit":"EUR"},{"label":{"fr":"","en":"Gross margin percentage of the department","es":""},"value":"35","unit":"PERCENT"}],"steps":[{"id":"INVENTORY_COST","label":{"fr":"","en":"Cost of the department's inventory","es":""},"answer":156000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000092","standard_id":"IAS2","concept_ids":["IAS2.COST.MEASUREMENT_TECHNIQUES"],"dimension":"CALCULATION","context":"V1_VG.IAS2.000301","tested_point":"VG.IAS2.000301","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000006","section_id":"techniques-rule"},"references":["IAS 2 §22","IAS 2 §21"],"exercise":{"prompt":{"fr":"","en":"The bookshop and stationer Hespéride measures the inventory of its school supplies department, made up of many fast-moving items with comparable margins, using the retail method. The year-end physical count, taken at selling prices, totals {shelf_value}. Management has determined for this department a gross margin rate of {margin_rate} of the selling price, markdowns included. Assuming that this technique gives a reliable approximation of cost, what is the cost of the school supplies inventory?","es":""},"explanation":{"fr":"","en":"Cost is obtained by deducting the appropriate gross margin percentage, which reflects markdowns, from the sales value (IAS 2, para. 22): 180,000 − 40% × 180,000 = 108,000. The 40% rate is entity data; using the method requires a result that approximates cost (IAS 2, para. 21).","es":""},"common_error":{"fr":"","en":"Using sales value as the cost of inventory.","es":""},"format":"CALCULATION","placeholders":[{"id":"shelf_value","value":"180000","unit":"EUR"},{"id":"margin_rate","value":"40","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Inventory counted at selling prices","es":""},"value":"180000","unit":"EUR"},{"label":{"fr":"","en":"Gross margin rate on selling price","es":""},"value":"40","unit":"PERCENT"}],"steps":[{"id":"INVENTORY_COST","label":{"fr":"","en":"Cost of the school supplies inventory","es":""},"answer":108000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"INVENTORY_COST","meaning":{"fr":"","en":"Cost of the school supplies inventory","es":""},"expression":"a - b * a","variables":[{"symbol":"a","meaning":{"fr":"","en":"Inventory counted at selling prices","es":""},"value":180000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Gross margin rate on selling price","es":""},"value":40,"unit":"PERCENT"}],"result":108000,"unit":"EUR","rationale":{"fr":"","en":"Cost is obtained by deducting the appropriate gross margin percentage, which reflects markdowns, from the sales value (IAS 2, para. 22): 180,000 − 40% × 180,000 = 108,000.","es":""}}],"references":["REF.IAS2.22","REF.IAS2.21"]}},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS2.000093","standard_id":"IAS2","concept_ids":["IAS2.COST.MEASUREMENT_TECHNIQUES"],"dimension":"CALCULATION","context":"V1_VG.IAS2.000302","tested_point":"VG.IAS2.000302","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000006","section_id":"techniques-rule"},"references":["IAS 2 §22","IAS 2 §21"],"exercise":{"prompt":{"fr":"","en":"Galeries Morvane applies the retail method department by department. At 31 December 20X1, the inventory of the delicatessen department is valued at {grocery_retail} at selling prices, with an appropriate gross margin percentage of {grocery_margin}; that of the perfume department is valued at {perfume_retail}, with a percentage of {perfume_margin}. These percentages, determined by the entity, take markdowns into account. The average margin of the whole store is 38%. Calculate the cost of each department's inventory and the total cost.","es":""},"explanation":{"fr":"","en":"By department (IAS 2, para. 22): delicatessen 130,000 × 70% = 91,000; perfume 70,000 × 45% = 31,500; total 122,500. Applying the store's average margin (38%), which includes other departments, to the 200,000 of sales value would give 124,000, that is 1,500 more: that rate is not the appropriate percentage for these two departments with very different margins (IAS 2, para. 22). Whether a result still approximates cost (IAS 2, para. 21) is a matter of judgement; IAS 2 sets no threshold. Using a percentage for each department, frequent in practice, is the entity's choice here.","es":""},"common_error":{"fr":"","en":"Applying the store's average margin to all departments.","es":""},"format":"CALCULATION","placeholders":[{"id":"grocery_retail","value":"130000","unit":"EUR"},{"id":"grocery_margin","value":"30","unit":"PERCENT"},{"id":"perfume_retail","value":"70000","unit":"EUR"},{"id":"perfume_margin","value":"55","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Delicatessen: inventory at selling prices","es":""},"value":"130000","unit":"EUR"},{"label":{"fr":"","en":"Delicatessen: gross margin percentage","es":""},"value":"30","unit":"PERCENT"},{"label":{"fr":"","en":"Perfume: inventory at selling prices","es":""},"value":"70000","unit":"EUR"},{"label":{"fr":"","en":"Perfume: gross margin percentage","es":""},"value":"55","unit":"PERCENT"}],"steps":[{"id":"GROCERY_COST","label":{"fr":"","en":"Cost of the delicatessen inventory","es":""},"answer":91000,"tolerance":0,"unit":"EUR"},{"id":"PERFUME_COST","label":{"fr":"","en":"Cost of the perfume inventory","es":""},"answer":31500,"tolerance":0,"unit":"EUR"},{"id":"TOTAL_COST","label":{"fr":"","en":"Total cost of inventory","es":""},"answer":122500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"TOTAL_COST","meaning":{"fr":"","en":"Total cost of inventory","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the delicatessen inventory","es":""},"value":91000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Cost of the perfume inventory","es":""},"value":31500,"unit":"EUR"}],"result":122500,"unit":"EUR"}],"references":["REF.IAS2.22","REF.IAS2.21"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000094","standard_id":"IAS2","concept_ids":["IAS2.COST.MEASUREMENT_TECHNIQUES"],"dimension":"CALCULATION","context":"V1_VG.IAS2.000302","tested_point":"VG.IAS2.000302","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000006","section_id":"techniques-rule"},"references":["IAS 2 §22","IAS 2 §21"],"exercise":{"prompt":{"fr":"","en":"The home decoration retailer Maison Tilleul measures its inventories using the retail method. Its management accountant proposes applying a single margin rate to the whole inventory; however, the household linen department earns a gross margin of {linen_margin} and the tableware department a margin of {tableware_margin}, these rates taking markdowns into account. Year-end inventory represents {linen_retail} of sales value for linen and {tableware_retail} for tableware. Determine the cost of each department's inventory, then the total cost, applying to each its own percentage.","es":""},"explanation":{"fr":"","en":"Household linen: 150,000 × 55% = 82,500; tableware: 90,000 × 80% = 72,000; total cost 154,500 (IAS 2, para. 22). The two departments have very different margins: a single rate would reflect the composition of the inventory only by coincidence and would distort the result as soon as the mix between departments changes, whereas the result must approximate cost (IAS 2, para. 21). Splitting by department is the entity's choice, consistent with the frequent practice of an average percentage for each retail department.","es":""},"common_error":{"fr":"","en":"Adding up sales values and then applying an average margin.","es":""},"format":"CALCULATION","placeholders":[{"id":"linen_retail","value":"150000","unit":"EUR"},{"id":"linen_margin","value":"45","unit":"PERCENT"},{"id":"tableware_retail","value":"90000","unit":"EUR"},{"id":"tableware_margin","value":"20","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Household linen: inventory at selling prices","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"Household linen: gross margin","es":""},"value":"45","unit":"PERCENT"},{"label":{"fr":"","en":"Tableware: inventory at selling prices","es":""},"value":"90000","unit":"EUR"},{"label":{"fr":"","en":"Tableware: gross margin","es":""},"value":"20","unit":"PERCENT"}],"steps":[{"id":"LINEN_COST","label":{"fr":"","en":"Cost of the household linen inventory","es":""},"answer":82500,"tolerance":0,"unit":"EUR"},{"id":"TABLEWARE_COST","label":{"fr":"","en":"Cost of the tableware inventory","es":""},"answer":72000,"tolerance":0,"unit":"EUR"},{"id":"TOTAL_COST","label":{"fr":"","en":"Total cost of inventory","es":""},"answer":154500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"TOTAL_COST","meaning":{"fr":"","en":"Total cost of inventory","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the household linen inventory","es":""},"value":82500,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Cost of the tableware inventory","es":""},"value":72000,"unit":"EUR"}],"result":154500,"unit":"EUR"}],"references":["REF.IAS2.22","REF.IAS2.21"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000095","standard_id":"IAS2","concept_ids":["IAS2.COST.MEASUREMENT_TECHNIQUES"],"dimension":"APPLICATION","context":"V1_QST.IAS2.000095","tested_point":"QST.IAS2.000095","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000006","section_id":"techniques-rule"},"references":["IAS 2 §21"],"exercise":{"prompt":{"fr":"","en":"Atelier Corbières measures its furniture inventory using the standard cost method. The standards have not been reviewed for three years; in the meantime, timber prices have risen by 25% on a lasting basis. At the reporting date, the furniture in inventory amounts to 410,000 at standard cost, whereas its estimated actual cost, under current normal conditions, is 520,000. What should the entity do?","es":""},"explanation":{"fr":"","en":"The standard cost method is permitted only if its results approximate cost; standards are regularly reviewed and revised where necessary (IAS 2, para. 21). A difference of 110,000 between standard and estimated actual cost shows that the standards no longer reflect current conditions: they must be revised so that the measurement approximates cost. The size of the difference is case data; IAS 2 sets no numerical threshold.","es":""},"common_error":{"fr":"","en":"Leaving standards unchanged for several years despite price changes.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Keep 410,000, because the standard cost method is expressly permitted by the standard, with no other condition.","es":""},"correct":false,"feedback":{"fr":"","en":"The method is permitted only if its result approximates cost, which is no longer the case.","es":""}},{"id":"B","text":{"fr":"","en":"Revise the standards so that the measurement approximates actual cost.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Keep the standards and merely mention the difference of 110,000 in the notes.","es":""},"correct":false,"feedback":{"fr":"","en":"A disclosure in the notes does not correct a measurement that no longer approximates cost.","es":""}},{"id":"D","text":{"fr":"","en":"Measure the furniture at replacement cost at the reporting date, which replaces the outdated standard cost.","es":""},"correct":false,"feedback":{"fr":"","en":"Replacement cost at the reporting date is not the basis used: the aim is to approximate the cost of the furniture in inventory.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000096","standard_id":"IAS2","concept_ids":["IAS2.COST_FORMULAS.SPECIFIC_IDENTIFICATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000096","tested_point":"QST.IAS2.000096","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":35,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000007","section_id":"specific-identification"},"references":["IAS 2 §23"],"exercise":{"prompt":{"fr":"","en":"The cost of inventory items that are not ordinarily interchangeable is assigned by specific identification of their individual costs.","es":""},"explanation":{"fr":"","en":"For items that are not ordinarily interchangeable, and for goods or services produced and segregated for specific projects, IAS 2 requires specific identification of individual costs (IAS 2, para. 23).","es":""},"common_error":{"fr":"","en":"Believing that specific identification is merely a management option.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000097","standard_id":"IAS2","concept_ids":["IAS2.COST_FORMULAS.SPECIFIC_IDENTIFICATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000097","tested_point":"QST.IAS2.000097","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000007","section_id":"specific-identification"},"references":["IAS 2 §23"],"exercise":{"prompt":{"fr":"","en":"For which of these inventories must cost be assigned by specific identification?","es":""},"explanation":{"fr":"","en":"Specific identification applies to items that are not ordinarily interchangeable and to goods produced and segregated for specific projects (IAS 2, para. 23): this is the case of yachts each built to a customer's specifications. Cement, screws and diesel are interchangeable items.","es":""},"common_error":{"fr":"","en":"Applying specific identification to standard items because they can be traced.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Standard cement bags bought by the truckload and stored on pallets in the same warehouse.","es":""},"correct":false,"feedback":{"fr":"","en":"Standard cement bags are interchangeable: their cost is assigned using a cost formula, not specific identification.","es":""}},{"id":"B","text":{"fr":"","en":"Yachts each built to a customer's specifications.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Boxes of identical screws bought by the thousand from several different suppliers.","es":""},"correct":false,"feedback":{"fr":"","en":"Identical screws are interchangeable; tracking them individually makes no sense.","es":""}},{"id":"D","text":{"fr":"","en":"Diesel stored in a common tank filled by successive deliveries.","es":""},"correct":false,"feedback":{"fr":"","en":"Diesel mixed in a tank is interchangeable by nature.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000098","standard_id":"IAS2","concept_ids":["IAS2.COST_FORMULAS.SPECIFIC_IDENTIFICATION","IAS2.COST_FORMULAS.FIFO_WEIGHTED_AVERAGE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000098","tested_point":"QST.IAS2.000098","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000007","section_id":"specific-identification"},"references":["IAS 2 §23","IAS 2 §24","IAS 2 §25"],"exercise":{"prompt":{"fr":"","en":"Chantiers Navals d'Iroise is considering the specific identification of costs. Which statements are correct?","es":""},"explanation":{"fr":"","en":"Specific identification attributes specific costs to identified items; it is appropriate for items segregated for a project, whether bought or produced (IAS 2, para. 23 and 24). It is inappropriate for large numbers of interchangeable items, because the selection of the items remaining in inventory could be used to influence profit or loss (IAS 2, para. 24); those inventories fall under FIFO or weighted average cost (IAS 2, para. 25).","es":""},"common_error":{"fr":"","en":"Confusing tracking precision with appropriateness of the method.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is recommended for large quantities of interchangeable items, because it is the most precise.","es":""},"correct":false,"feedback":{"fr":"","en":"The reverse is true: for many interchangeable items, it would make it possible to influence profit or loss.","es":""}},{"id":"B","text":{"fr":"","en":"It consists of attributing specific costs to identified items of inventory.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Management may choose it freely instead of FIFO for any inventory.","es":""},"correct":false,"feedback":{"fr":"","en":"It is not a free option: it targets items that are not interchangeable or are segregated for projects.","es":""}},{"id":"D","text":{"fr":"","en":"It is appropriate for items segregated for a project, whether they were bought or produced.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"Applied to many interchangeable items, it would allow profit or loss to be influenced through the choice of the items remaining in inventory.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000099","standard_id":"IAS2","concept_ids":["IAS2.COST_FORMULAS.SPECIFIC_IDENTIFICATION","IAS2.COST_FORMULAS.FIFO_WEIGHTED_AVERAGE"],"dimension":"APPLICATION","context":"V1_QST.IAS2.000099","tested_point":"QST.IAS2.000099","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000007","section_id":"specific-identification"},"references":["IAS 2 §23","IAS 2 §25"],"exercise":{"prompt":{"fr":"","en":"Automobiles Ardoise sells used vehicles, each identified by its serial number and acquired at a price negotiated individually with private sellers. To simplify inventory record-keeping, its finance director proposes measuring all vehicles at weighted average cost. Which position should be taken?","es":""},"explanation":{"fr":"","en":"Used vehicles each acquired at their own price are not ordinarily interchangeable: their cost is assigned by specific identification of their individual costs (IAS 2, para. 23). FIFO and weighted average cost apply to other inventories (IAS 2, para. 25).","es":""},"common_error":{"fr":"","en":"Preferring an average for mere convenience for unique items.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Accept, because weighted average cost is a formula permitted by the standard for all inventories without distinction.","es":""},"correct":false,"feedback":{"fr":"","en":"Weighted average cost only applies to inventories other than items that are not interchangeable.","es":""}},{"id":"B","text":{"fr":"","en":"Use FIFO instead, since the oldest vehicles are in practice often sold first.","es":""},"correct":false,"feedback":{"fr":"","en":"FIFO is not suited to unique vehicles whose individual cost is known.","es":""}},{"id":"C","text":{"fr":"","en":"Assign the cost of each vehicle by specific identification.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Measure all vehicles at the lowest purchase price observed during the year, for prudence.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard does not provide for measuring inventories at the period's lowest purchase price.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000100","standard_id":"IAS2","concept_ids":["IAS2.COST_FORMULAS.SPECIFIC_IDENTIFICATION","IAS2.COST_FORMULAS.FIFO_WEIGHTED_AVERAGE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000100","tested_point":"QST.IAS2.000100","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000007","section_id":"specific-identification"},"references":["IAS 2 §24","IAS 2 §23","IAS 2 §25"],"exercise":{"prompt":{"fr":"","en":"Quincaillerie Bastide holds 2 million identical bolts bought at different prices during the year. It may apply specific identification and designate as sold the batches bought at the lowest price in order to improve its profit.","es":""},"explanation":{"fr":"","en":"Specific identification is inappropriate when inventories comprise large numbers of items that are ordinarily interchangeable: the selection of the items remaining in inventory could be used to influence profit or loss (IAS 2, para. 24). It is reserved for items that are not interchangeable or are segregated for projects (IAS 2, para. 23); the bolts fall under FIFO or weighted average cost (IAS 2, para. 25).","es":""},"common_error":{"fr":"","en":"Choosing the batches sold to manage the margin.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000101","standard_id":"IAS2","concept_ids":["IAS2.COST_FORMULAS.SPECIFIC_IDENTIFICATION","IAS2.COST_FORMULAS.FIFO_WEIGHTED_AVERAGE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000101","tested_point":"QST.IAS2.000101","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000007","section_id":"specific-identification"},"references":["IAS 2 §23","IAS 2 §24","IAS 2 §25"],"exercise":{"prompt":{"fr":"","en":"Helioterra buys 500 standard solar panels. On receipt, 120 of them are labelled and segregated in an area reserved for the construction of a solar plant ordered by a specific customer; the other 380 join the general inventory, where they are mixed with previous deliveries. How should the cost of these panels be assigned?","es":""},"explanation":{"fr":"","en":"Goods segregated for a specific project fall under specific identification, the appropriate treatment for such goods whether bought or produced (IAS 2, para. 24): the 120 reserved panels are measured at their individual cost. The 380 panels mixed with general inventory are interchangeable and fall under FIFO or weighted average cost (IAS 2, para. 25).","es":""},"common_error":{"fr":"","en":"Applying a single method to goods whose situations differ.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Weighted average cost for all 500 panels, since they are physically identical and bought together.","es":""},"correct":false,"feedback":{"fr":"","en":"The 120 panels segregated for a specific project fall under specific identification, the appropriate treatment for goods segregated for a project, even if bought and standard.","es":""}},{"id":"B","text":{"fr":"","en":"Specific identification for all 500 panels, each bearing a serial number that allows it to be tracked.","es":""},"correct":false,"feedback":{"fr":"","en":"A serial number is not enough: the 380 panels in general inventory are interchangeable.","es":""}},{"id":"C","text":{"fr":"","en":"Specific identification for the 120 segregated panels; FIFO or weighted average cost for the other 380.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Latest purchase price for the 120 reserved panels and weighted average cost of the year for the 380 panels in general inventory.","es":""},"correct":false,"feedback":{"fr":"","en":"The latest purchase price is not a method provided for goods segregated for a project.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000102","standard_id":"IAS2","concept_ids":["IAS2.COST_FORMULAS.SPECIFIC_IDENTIFICATION","IAS2.COST_FORMULAS.FIFO_WEIGHTED_AVERAGE"],"dimension":"APPLICATION","context":"V1_QST.IAS2.000102","tested_point":"QST.IAS2.000102","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000007","section_id":"specific-identification"},"references":["IAS 2 §23","IAS 2 §24","IAS 2 §25"],"exercise":{"prompt":{"fr":"","en":"Bijouterie Saint-Amand holds unique pieces made by designers, each acquired at its own price, as well as standard silver chains bought by the thousand at varying prices. Which approach to assigning cost complies with IAS 2?","es":""},"explanation":{"fr":"","en":"Unique pieces are not ordinarily interchangeable: their cost is assigned by specific identification (IAS 2, para. 23). Standard chains, numerous and interchangeable, are not suited to it, because the choice of the items remaining in inventory could influence profit or loss (IAS 2, para. 24); they fall under FIFO or weighted average cost (IAS 2, para. 25).","es":""},"common_error":{"fr":"","en":"Imposing a single method on inventories of a different nature.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Specific identification for the unique pieces; FIFO or weighted average cost for the standard chains.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Specific identification for all items, so as to track each chain and each piece separately.","es":""},"correct":false,"feedback":{"fr":"","en":"For thousands of interchangeable chains, specific identification would allow profit or loss to be influenced.","es":""}},{"id":"C","text":{"fr":"","en":"Weighted average cost for all items, for the sake of uniform methods within the jeweller.","es":""},"correct":false,"feedback":{"fr":"","en":"Unique pieces are not interchangeable: the standard requires specific identification for them.","es":""}},{"id":"D","text":{"fr":"","en":"FIFO for the unique pieces and specific identification for the standard chains bought in large quantities.","es":""},"correct":false,"feedback":{"fr":"","en":"The methods are reversed: the opposite is compliant.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000103","standard_id":"IAS2","concept_ids":["IAS2.COST_FORMULAS.SPECIFIC_IDENTIFICATION","IAS2.COST_FORMULAS.FIFO_WEIGHTED_AVERAGE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000103","tested_point":"QST.IAS2.000103","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000007","section_id":"specific-identification"},"references":["IAS 2 §24","IAS 2 §23","IAS 2 §25"],"exercise":{"prompt":{"fr":"","en":"Why is specific identification inappropriate for an inventory comprising a large number of items that are ordinarily interchangeable?","es":""},"explanation":{"fr":"","en":"With many interchangeable items, the choice of the items regarded as remaining in inventory could be used to influence profit or loss (IAS 2, para. 24). Specific identification remains required for items that are not interchangeable and for goods segregated for projects, whether bought or produced (IAS 2, para. 23 and 24); other inventories fall under FIFO or weighted average cost (IAS 2, para. 25).","es":""},"common_error":{"fr":"","en":"Believing that the method is prohibited for bought goods.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Because it is reserved for goods produced by the entity and prohibited for goods bought from third parties.","es":""},"correct":false,"feedback":{"fr":"","en":"It is also appropriate for bought goods segregated for a project.","es":""}},{"id":"B","text":{"fr":"","en":"Because it always leads to a cost higher than the net realisable value of the items concerned.","es":""},"correct":false,"feedback":{"fr":"","en":"No cost method by nature leads to a cost higher than net realisable value.","es":""}},{"id":"C","text":{"fr":"","en":"Because the choice of the items remaining in inventory could be used to influence profit or loss.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Because the standard always requires FIFO, the only cost formula permitted for those items.","es":""},"correct":false,"feedback":{"fr":"","en":"Weighted average cost is also permitted for those inventories.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000104","standard_id":"IAS2","concept_ids":["IAS2.COST_FORMULAS.FIFO_WEIGHTED_AVERAGE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000104","tested_point":"QST.IAS2.000104","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":35,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000007","section_id":"fifo-and-average"},"references":["IAS 2 §25"],"exercise":{"prompt":{"fr":"","en":"An entity may assign the cost of its interchangeable inventories using the last-in, first-out (LIFO) method, provided it applies it consistently.","es":""},"explanation":{"fr":"","en":"For inventories other than those subject to specific identification, IAS 2 permits only two formulas: first-in, first-out (FIFO) and weighted average cost (IAS 2, para. 25). The LIFO method is not one of them, even if applied consistently.","es":""},"common_error":{"fr":"","en":"Believing that any method applied consistently is acceptable.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000105","standard_id":"IAS2","concept_ids":["IAS2.COST_FORMULAS.FIFO_WEIGHTED_AVERAGE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000105","tested_point":"QST.IAS2.000105","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000007","section_id":"fifo-and-average"},"references":["IAS 2 §27"],"exercise":{"prompt":{"fr":"","en":"Épices Marivel applies first-in, first-out (FIFO). What does the cost of its closing inventory correspond to?","es":""},"explanation":{"fr":"","en":"FIFO assumes that the items purchased or produced first are sold first: closing inventory therefore corresponds to the most recent receipts (IAS 2, para. 27).","es":""},"common_error":{"fr":"","en":"Confusing FIFO with a method valuing closing inventory at old prices.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"To the oldest receipts, which have remained in store since the beginning of the period.","es":""},"correct":false,"feedback":{"fr":"","en":"It is the reverse: under FIFO, the oldest receipts are the first to go out.","es":""}},{"id":"B","text":{"fr":"","en":"To the most recent receipts.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"To the weighted average of opening inventory and all receipts of the period.","es":""},"correct":false,"feedback":{"fr":"","en":"This describes weighted average cost, not FIFO.","es":""}},{"id":"D","text":{"fr":"","en":"To the batches designated by management as remaining in store at the reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"FIFO rests on an assumption about the order of issue, not on a management choice.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000106","standard_id":"IAS2","concept_ids":["IAS2.COST_FORMULAS.FIFO_WEIGHTED_AVERAGE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000106","tested_point":"QST.IAS2.000106","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000007","section_id":"fifo-and-average"},"references":["IAS 2 §25","IAS 2","IAS 2 §27"],"exercise":{"prompt":{"fr":"","en":"Alvéa Distribution is reviewing the cost formulas for its inventories. Which statements are correct?","es":""},"explanation":{"fr":"","en":"The same cost formula must be used for all inventories having a similar nature and use; different formulas may be justified for inventories with a different nature or use (IAS 2, para. 25). A difference in geographical location or in tax rules is not sufficient to justify different formulas (IAS 2, para. 26). Weighted average cost may be calculated over the period or as each additional receipt arrives, depending on the circumstances of the entity (IAS 2, para. 27).","es":""},"common_error":{"fr":"","en":"Letting each site choose its formula for identical inventories.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A difference in geographical location is sufficient to justify a different formula for identical inventories.","es":""},"correct":false,"feedback":{"fr":"","en":"Location alone does not justify different formulas for inventories of the same nature and use.","es":""}},{"id":"B","text":{"fr":"","en":"The same formula must be applied to all inventories having a similar nature and use.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Different local tax rules justify different formulas for similar inventories.","es":""},"correct":false,"feedback":{"fr":"","en":"Different tax rules are not sufficient to justify different formulas.","es":""}},{"id":"D","text":{"fr":"","en":"Weighted average cost may be calculated over the period or at each new receipt, depending on the entity's circumstances.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"Different formulas may be justified for inventories with a different nature or use.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000107","standard_id":"IAS2","concept_ids":["IAS2.COST_FORMULAS.FIFO_WEIGHTED_AVERAGE"],"dimension":"CALCULATION","context":"V1_VG.IAS2.000303","tested_point":"VG.IAS2.000303","difficulty":"BEGINNER","source":"V1","format":"NUMERICAL","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000007","section_id":"fifo-and-average"},"references":["IAS 2 §27","IAS 2 §25"],"exercise":{"prompt":{"fr":"","en":"Papeteries Lorvel measures its reams of paper using first-in, first-out (FIFO). For March 20X1: opening inventory of {opening_qty} reams at a unit cost of {opening_unit_cost}; purchase of {purchase_qty} reams at a unit cost of {purchase_unit_cost}; sales of {sold_qty} reams. Calculate the cost of sales for the month and the cost of closing inventory.","es":""},"explanation":{"fr":"","en":"Under FIFO, the first reams received are deemed sold first (IAS 2, para. 27). Cost of sales: 2,000 × 4 = 8,000 for opening inventory, then 1,500 × 5 = 7,500 from the purchase, that is 15,500. Closing inventory consists of the 1,500 most recent reams: 1,500 × 5 = 7,500. Check: 8,000 + 15,000 = 23,000 = 15,500 + 7,500.","es":""},"common_error":{"fr":"","en":"Valuing sales at the latest purchase cost, which amounts to LIFO logic.","es":""},"format":"CALCULATION","placeholders":[{"id":"opening_qty","value":"2000","unit":"UNITS"},{"id":"opening_unit_cost","value":"4","unit":"EUR"},{"id":"purchase_qty","value":"3000","unit":"UNITS"},{"id":"purchase_unit_cost","value":"5","unit":"EUR"},{"id":"sold_qty","value":"3500","unit":"UNITS"}],"data":[{"label":{"fr":"","en":"Opening inventory (reams)","es":""},"value":"2000","unit":"UNITS"},{"label":{"fr":"","en":"Unit cost of opening inventory","es":""},"value":"4","unit":"EUR"},{"label":{"fr":"","en":"Quantity purchased (reams)","es":""},"value":"3000","unit":"UNITS"},{"label":{"fr":"","en":"Unit cost of the purchase","es":""},"value":"5","unit":"EUR"},{"label":{"fr":"","en":"Quantity sold (reams)","es":""},"value":"3500","unit":"UNITS"}],"steps":[{"id":"COST_OF_SALES","label":{"fr":"","en":"Cost of sales","es":""},"answer":15500,"tolerance":0,"unit":"EUR"},{"id":"CLOSING_INVENTORY","label":{"fr":"","en":"Cost of closing inventory","es":""},"answer":7500,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000108","standard_id":"IAS2","concept_ids":["IAS2.COST_FORMULAS.FIFO_WEIGHTED_AVERAGE"],"dimension":"CALCULATION","context":"V1_VG.IAS2.000303","tested_point":"VG.IAS2.000303","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000007","section_id":"fifo-and-average"},"references":["IAS 2 §27","IAS 2 §25"],"exercise":{"prompt":{"fr":"","en":"The lubricant distributor Hydrovane tracks its drums of industrial oil on a FIFO basis. It held {opening_qty} drums at {opening_unit_cost} each at the start of 20X1, received {march_qty} at {march_unit_cost} in March and then {september_qty} at {september_unit_cost} in September, and sold {sold_qty} over the year. What is the cost of the drums sold and that of the drums remaining in inventory at the reporting date?","es":""},"explanation":{"fr":"","en":"Under FIFO, sales use up receipts in their order of arrival (IAS 2, para. 27): 400 × 30 = 12,000, then 600 × 33 = 19,800, then 200 × 36 = 7,200; cost of sales 39,000. The 300 September drums remain: 300 × 36 = 10,800. Check: 12,000 + 19,800 + 18,000 = 49,800 = 39,000 + 10,800.","es":""},"common_error":{"fr":"","en":"Starting with the most recent delivery.","es":""},"format":"CALCULATION","placeholders":[{"id":"opening_qty","value":"400","unit":"UNITS"},{"id":"opening_unit_cost","value":"30","unit":"EUR"},{"id":"march_qty","value":"600","unit":"UNITS"},{"id":"march_unit_cost","value":"33","unit":"EUR"},{"id":"september_qty","value":"500","unit":"UNITS"},{"id":"september_unit_cost","value":"36","unit":"EUR"},{"id":"sold_qty","value":"1200","unit":"UNITS"}],"data":[{"label":{"fr":"","en":"Drums in inventory at the start of the year","es":""},"value":"400","unit":"UNITS"},{"label":{"fr":"","en":"Opening unit cost","es":""},"value":"30","unit":"EUR"},{"label":{"fr":"","en":"Drums received in March","es":""},"value":"600","unit":"UNITS"},{"label":{"fr":"","en":"March unit cost","es":""},"value":"33","unit":"EUR"},{"label":{"fr":"","en":"Drums received in September","es":""},"value":"500","unit":"UNITS"},{"label":{"fr":"","en":"September unit cost","es":""},"value":"36","unit":"EUR"},{"label":{"fr":"","en":"Drums sold during the year","es":""},"value":"1200","unit":"UNITS"}],"steps":[{"id":"COST_OF_SALES","label":{"fr":"","en":"Cost of drums sold","es":""},"answer":39000,"tolerance":0,"unit":"EUR"},{"id":"CLOSING_INVENTORY","label":{"fr":"","en":"Cost of drums in inventory at the reporting date","es":""},"answer":10800,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS2.000109","standard_id":"IAS2","concept_ids":["IAS2.COST_FORMULAS.FIFO_WEIGHTED_AVERAGE"],"dimension":"CALCULATION","context":"V1_VG.IAS2.000304","tested_point":"VG.IAS2.000304","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000007","section_id":"fifo-and-average"},"references":["IAS 2 §27","IAS 2 §25"],"exercise":{"prompt":{"fr":"","en":"The trader Cafés Torrélia resells green coffee in bags and applies weighted average cost, calculated over the whole period. For 20X1: opening inventory of {opening_qty} bags at {opening_unit_cost} per bag; purchases of {purchase_qty} bags at {purchase_unit_cost} per bag; sales of {sold_qty} bags. Calculate the weighted average unit cost, the cost of sales and the cost of closing inventory.","es":""},"explanation":{"fr":"","en":"Weighted average cost is calculated from opening inventory and the receipts of the period (IAS 2, para. 27): (1,000 × 20 + 3,000 × 24) / 4,000 = 92,000 / 4,000 = 23. Cost of sales: 2,500 × 23 = 57,500; closing inventory: 1,500 × 23 = 34,500. Calculating over the period is the approach chosen by the entity.","es":""},"common_error":{"fr":"","en":"Taking the simple average of the two unit costs, that is 22.","es":""},"format":"CALCULATION","placeholders":[{"id":"opening_qty","value":"1000","unit":"UNITS"},{"id":"opening_unit_cost","value":"20","unit":"EUR"},{"id":"purchase_qty","value":"3000","unit":"UNITS"},{"id":"purchase_unit_cost","value":"24","unit":"EUR"},{"id":"sold_qty","value":"2500","unit":"UNITS"}],"data":[{"label":{"fr":"","en":"Opening inventory (bags)","es":""},"value":"1000","unit":"UNITS"},{"label":{"fr":"","en":"Unit cost of opening inventory","es":""},"value":"20","unit":"EUR"},{"label":{"fr":"","en":"Bags purchased","es":""},"value":"3000","unit":"UNITS"},{"label":{"fr":"","en":"Unit cost of purchases","es":""},"value":"24","unit":"EUR"},{"label":{"fr":"","en":"Bags sold","es":""},"value":"2500","unit":"UNITS"}],"steps":[{"id":"AVERAGE_UNIT_COST","label":{"fr":"","en":"Weighted average unit cost","es":""},"answer":23,"tolerance":0,"unit":"EUR"},{"id":"COST_OF_SALES","label":{"fr":"","en":"Cost of sales","es":""},"answer":57500,"tolerance":0,"unit":"EUR"},{"id":"CLOSING_INVENTORY","label":{"fr":"","en":"Cost of closing inventory","es":""},"answer":34500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"COST_OF_SALES","meaning":{"fr":"","en":"Cost of sales","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Bags sold","es":""},"value":2500,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Weighted average unit cost","es":""},"value":23,"unit":"EUR"}],"result":57500,"unit":"EUR"}],"rationale":{"fr":"","en":"Weighted average cost is calculated from opening inventory and the receipts of the period (IAS 2, para. 27): (1,000 × 20 + 3,000 × 24) / 4,000 = 92,000 / 4,000 = 23.","es":""},"references":["REF.IAS2.27"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000110","standard_id":"IAS2","concept_ids":["IAS2.COST_FORMULAS.FIFO_WEIGHTED_AVERAGE"],"dimension":"CALCULATION","context":"V1_VG.IAS2.000304","tested_point":"VG.IAS2.000304","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000007","section_id":"fifo-and-average"},"references":["IAS 2 §27","IAS 2 §25"],"exercise":{"prompt":{"fr":"","en":"Jardins Elvire, a wholesaler of garden furniture, assigns the cost of its garden sets using an annual weighted average. At 1 January 20X1, it held {opening_qty} sets valued at {opening_unit_cost} each; it bought {april_qty} at {april_unit_cost} in April and {october_qty} at {october_unit_cost} in October. Deliveries to customers during the year cover {issued_qty} sets. Determine the average unit cost for the year, the cost of the sets sold and the value of inventory at 31 December 20X1.","es":""},"explanation":{"fr":"","en":"The period weighted average includes opening inventory and all receipts (IAS 2, para. 27): 600 × 40 + 900 × 45 + 500 × 51 = 24,000 + 40,500 + 25,500 = 90,000 for 2,000 sets, that is 45 each. Cost of the sets sold: 1,600 × 45 = 72,000; inventory at 31 December 20X1: 400 × 45 = 18,000. Using an annual average is the entity's choice.","es":""},"common_error":{"fr":"","en":"Excluding opening inventory from the average.","es":""},"format":"CALCULATION","placeholders":[{"id":"opening_qty","value":"600","unit":"UNITS"},{"id":"opening_unit_cost","value":"40","unit":"EUR"},{"id":"april_qty","value":"900","unit":"UNITS"},{"id":"april_unit_cost","value":"45","unit":"EUR"},{"id":"october_qty","value":"500","unit":"UNITS"},{"id":"october_unit_cost","value":"51","unit":"EUR"},{"id":"issued_qty","value":"1600","unit":"UNITS"}],"data":[{"label":{"fr":"","en":"Sets in inventory at 1 January","es":""},"value":"600","unit":"UNITS"},{"label":{"fr":"","en":"Unit cost at 1 January","es":""},"value":"40","unit":"EUR"},{"label":{"fr":"","en":"Sets bought in April","es":""},"value":"900","unit":"UNITS"},{"label":{"fr":"","en":"April unit cost","es":""},"value":"45","unit":"EUR"},{"label":{"fr":"","en":"Sets bought in October","es":""},"value":"500","unit":"UNITS"},{"label":{"fr":"","en":"October unit cost","es":""},"value":"51","unit":"EUR"},{"label":{"fr":"","en":"Sets delivered to customers","es":""},"value":"1600","unit":"UNITS"}],"steps":[{"id":"AVERAGE_UNIT_COST","label":{"fr":"","en":"Average unit cost for the year","es":""},"answer":45,"tolerance":0,"unit":"EUR"},{"id":"COST_OF_SALES","label":{"fr":"","en":"Cost of the sets sold","es":""},"answer":72000,"tolerance":0,"unit":"EUR"},{"id":"CLOSING_INVENTORY","label":{"fr":"","en":"Inventory at 31 December","es":""},"answer":18000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"COST_OF_SALES","meaning":{"fr":"","en":"Cost of the sets sold","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Sets delivered to customers","es":""},"value":1600,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"April unit cost","es":""},"value":45,"unit":"EUR"}],"result":72000,"unit":"EUR"}],"rationale":{"fr":"","en":"The period weighted average includes opening inventory and all receipts (IAS 2, para. 27): 600 × 40 + 900 × 45 + 500 × 51 = 24,000 + 40,500 + 25,500 = 90,000 for 2,000 sets, that is 45 each.","es":""},"references":["REF.IAS2.27"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000111","standard_id":"IAS2","concept_ids":["IAS2.COST_FORMULAS.FIFO_WEIGHTED_AVERAGE"],"dimension":"CALCULATION","context":"V1_QST.IAS2.000111","tested_point":"QST.IAS2.000111","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000007","section_id":"fifo-and-average"},"references":["IAS 2 §27","IAS 2 §25"],"exercise":{"prompt":{"fr":"","en":"Optique Brévalan keeps a perpetual inventory of its progressive lenses and recalculates weighted average cost at each new receipt. Movements for the quarter, in order: opening inventory of {opening_qty} units at {opening_unit_cost}; purchase of {purchase1_qty} units at {purchase1_unit_cost}; sale of {sale1_qty} units; purchase of {purchase2_qty} units at {purchase2_unit_cost}; sale of {sale2_qty} units. Calculate the cost of sales for the quarter and the cost of closing inventory.","es":""},"explanation":{"fr":"","en":"The average may be calculated at each new receipt, depending on the entity's circumstances (IAS 2, para. 27). After the first purchase: (5,000 + 16,200) / 400 = 53; first sale 250 × 53 = 13,250, leaving 150 units for 7,950. After the second purchase: (7,950 + 15,250) / 400 = 58; second sale 300 × 58 = 17,400. Cost of sales 13,250 + 17,400 = 30,650; closing inventory 100 × 58 = 5,800. Check: 5,000 + 16,200 + 15,250 = 36,450 = 30,650 + 5,800.","es":""},"common_error":{"fr":"","en":"Calculating a single average for the quarter whereas the entity recalculates at each receipt.","es":""},"format":"CALCULATION","placeholders":[{"id":"opening_qty","value":"100","unit":"UNITS"},{"id":"opening_unit_cost","value":"50","unit":"EUR"},{"id":"purchase1_qty","value":"300","unit":"UNITS"},{"id":"purchase1_unit_cost","value":"54","unit":"EUR"},{"id":"sale1_qty","value":"250","unit":"UNITS"},{"id":"purchase2_qty","value":"250","unit":"UNITS"},{"id":"purchase2_unit_cost","value":"61","unit":"EUR"},{"id":"sale2_qty","value":"300","unit":"UNITS"}],"data":[{"label":{"fr":"","en":"Opening inventory (units)","es":""},"value":"100","unit":"UNITS"},{"label":{"fr":"","en":"Unit cost of opening inventory","es":""},"value":"50","unit":"EUR"},{"label":{"fr":"","en":"First purchase (units)","es":""},"value":"300","unit":"UNITS"},{"label":{"fr":"","en":"Unit cost of the first purchase","es":""},"value":"54","unit":"EUR"},{"label":{"fr":"","en":"First sale (units)","es":""},"value":"250","unit":"UNITS"},{"label":{"fr":"","en":"Second purchase (units)","es":""},"value":"250","unit":"UNITS"},{"label":{"fr":"","en":"Unit cost of the second purchase","es":""},"value":"61","unit":"EUR"},{"label":{"fr":"","en":"Second sale (units)","es":""},"value":"300","unit":"UNITS"}],"steps":[{"id":"COST_OF_SALES","label":{"fr":"","en":"Cost of sales for the quarter","es":""},"answer":30650,"tolerance":0,"unit":"EUR"},{"id":"CLOSING_INVENTORY","label":{"fr":"","en":"Cost of closing inventory","es":""},"answer":5800,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000114","standard_id":"IAS2","concept_ids":["IAS2.COST_FORMULAS.FIFO_WEIGHTED_AVERAGE"],"dimension":"ANALYSIS","context":"V1_QST.IAS2.000114","tested_point":"QST.IAS2.000114","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000007","section_id":"fifo-and-average"},"references":["IAS 2 §25","IAS 2 §27"],"exercise":{"prompt":{"fr":"","en":"The accountant of Verrerie Ambrine, which applies FIFO, calculated the cost of sales for the month as follows: opening inventory of 1,000 bottles at 6, purchase of 1,000 bottles at 8, sales of 1,200 bottles; cost of sales used = 1,000 × 8 + 200 × 6 = 9,200. What error did he make?","es":""},"explanation":{"fr":"","en":"The accountant issued the most recent receipts first, which amounts to the LIFO method, which is not permitted: only FIFO and weighted average cost are (IAS 2, para. 25). Under FIFO, the first bottles received go out first (IAS 2, para. 27): 1,000 × 6 + 200 × 8 = 7,600. For comparison, weighted average cost over the period would give 1,200 × 7 = 8,400.","es":""},"common_error":{"fr":"","en":"Confusing FIFO with valuation at the latest price.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No error: valuing issues at the most recent prices complies with FIFO.","es":""},"correct":false,"feedback":{"fr":"","en":"FIFO issues the oldest receipts first, not the most recent ones.","es":""}},{"id":"B","text":{"fr":"","en":"He applied LIFO logic, which is not permitted; under FIFO, cost of sales is 7,600.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"He should have valued all issues at the latest purchase price of 8, that is 9,600.","es":""},"correct":false,"feedback":{"fr":"","en":"Valuing all issues at the latest price is neither FIFO nor weighted average cost.","es":""}},{"id":"D","text":{"fr":"","en":"The error only concerns disclosure: the formula used remains permitted provided it is applied consistently.","es":""},"correct":false,"feedback":{"fr":"","en":"Consistency does not make a formula acceptable when the standard does not permit it.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000115","standard_id":"IAS2","concept_ids":["IAS2.COST_FORMULAS.FIFO_WEIGHTED_AVERAGE"],"dimension":"APPLICATION","context":"V1_QST.IAS2.000115","tested_point":"QST.IAS2.000115","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000007","section_id":"fifo-and-average"},"references":["IAS 2 §25","IAS 2"],"exercise":{"prompt":{"fr":"","en":"Nordelia distributes identical spare parts, intended for the same use, from two warehouses: one in Lyon, the other in its Seville branch. The Lyon accounting department applies FIFO; the Seville one applies weighted average cost, considered more advantageous under local tax rules. What conclusion should be drawn for Nordelia's financial statements?","es":""},"explanation":{"fr":"","en":"The same cost formula must be used for all inventories having a similar nature and use (IAS 2, para. 25). A difference in geographical location or in tax rules is not sufficient to justify different formulas (IAS 2, para. 26): Nordelia must use a single formula for these parts. The choice between FIFO and weighted average cost is the entity's. By contrast, inventories of the same type put to a different use in another operating segment could justify another formula (IAS 2, para. 26).","es":""},"common_error":{"fr":"","en":"Aligning the accounting formula with local tax rules.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A single formula must be used for these parts, wherever they are located.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Both formulas may coexist, since the inventories are located in two different countries subject to different rules.","es":""},"correct":false,"feedback":{"fr":"","en":"Geographical location and tax rules are not sufficient to justify different formulas.","es":""}},{"id":"C","text":{"fr":"","en":"Nordelia must abandon both formulas and measure all parts by specific identification to remove the conflict.","es":""},"correct":false,"feedback":{"fr":"","en":"Identical, interchangeable parts do not fall under specific identification.","es":""}},{"id":"D","text":{"fr":"","en":"Both formulas are acceptable provided the notes state the formula used by each warehouse.","es":""},"correct":false,"feedback":{"fr":"","en":"A disclosure in the notes does not cure the inconsistency between formulas for similar inventories.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000116","standard_id":"IAS2","concept_ids":["IAS2.NRV.WRITE_DOWN"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000116","tested_point":"QST.IAS2.000116","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":35,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000008","section_id":"indicators"},"references":["IAS 2 §28"],"exercise":{"prompt":{"fr":"","en":"The cost of inventories that are damaged or have become obsolete may not be recoverable; those inventories are then written down to net realisable value.","es":""},"explanation":{"fr":"","en":"The cost of inventories may not be recoverable if they are damaged, wholly or partially obsolete, if their selling prices have declined or if the estimated costs of completion or of making the sale have increased; writing them down to net realisable value avoids carrying an asset above the amount expected from its sale or use (IAS 2, para. 28).","es":""},"common_error":{"fr":"","en":"Keeping unsaleable inventories at cost.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000117","standard_id":"IAS2","concept_ids":["IAS2.NRV.WRITE_DOWN"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000117","tested_point":"QST.IAS2.000117","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000008","section_id":"indicators"},"references":["IAS 2 §28"],"exercise":{"prompt":{"fr":"","en":"Which idea underlies writing inventories down to net realisable value?","es":""},"explanation":{"fr":"","en":"Writing inventories down to net realisable value reflects the view that an asset should not be carried in excess of the amount expected to be realised from its sale or use (IAS 2, para. 28).","es":""},"common_error":{"fr":"","en":"Confusing net realisable value with fair value.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Inventories must be measured at fair value at each reporting date, upwards as well as downwards.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard does not require fair value measurement; a write-down only works downwards, below cost.","es":""}},{"id":"B","text":{"fr":"","en":"A write-down makes it possible to smooth profit from one year to the next by building a prudence reserve.","es":""},"correct":false,"feedback":{"fr":"","en":"A write-down reflects an actual loss of value, not a profit-smoothing tool.","es":""}},{"id":"C","text":{"fr":"","en":"An asset should not be carried above what its sale or use is expected to realise.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Inventories must always be reduced to replacement cost when it is below historical cost.","es":""},"correct":false,"feedback":{"fr":"","en":"Replacement cost is not the reference measure; net realisable value is.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000118","standard_id":"IAS2","concept_ids":["IAS2.NRV.WRITE_DOWN"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000118","tested_point":"QST.IAS2.000118","difficulty":"BEGINNER","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000008","section_id":"indicators"},"references":["IAS 2 §28"],"exercise":{"prompt":{"fr":"","en":"Jouets Pimprenelle is preparing its year-end. Which of the following situations may make the cost of its inventories not recoverable?","es":""},"explanation":{"fr":"","en":"The cost of inventories may not be recoverable if they are damaged, have become wholly or partially obsolete, if their selling prices have declined, or if the estimated costs of completion or of making the sale have increased (IAS 2, para. 28). A rise in the selling price or in the replacement cost of items already held does not reduce the amount they will realise.","es":""},"common_error":{"fr":"","en":"Forgetting increases in selling costs as a reason for a write-down.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"An expected rise in the selling price of the toys next season.","es":""},"correct":false,"feedback":{"fr":"","en":"A rise in selling price increases the amount expected from the sale.","es":""}},{"id":"B","text":{"fr":"","en":"Partial obsolescence of a range replaced by a new model.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A rise in the replacement cost of toys already in inventory.","es":""},"correct":false,"feedback":{"fr":"","en":"A higher replacement cost does not reduce what the toys held will realise.","es":""}},{"id":"D","text":{"fr":"","en":"A rise in the transport costs borne by the seller to deliver customers.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"Toys damaged in a flood at the warehouse.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000119","standard_id":"IAS2","concept_ids":["IAS2.NRV.WRITE_DOWN","IAS2.DEFINITIONS.KEY_TERMS","IAS2.MEASUREMENT.PRINCIPLE"],"dimension":"CALCULATION","context":"V1_VG.IAS2.000307","tested_point":"VG.IAS2.000307","difficulty":"BEGINNER","source":"V1","format":"NUMERICAL","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000002","section_id":"inventories-definition"},"references":["IAS 2 §28","IAS 2 §6","IAS 2 §9"],"exercise":{"prompt":{"fr":"","en":"Horlogerie Vasselin holds a batch of watches from a past collection, with a cost of {cost}. Their estimated selling price in the ordinary course of business is {selling_price}, and the estimated costs necessary to make the sale (resellers' commissions) amount to {selling_costs}. Calculate the net realisable value of the batch and the amount of the write-down.","es":""},"explanation":{"fr":"","en":"Net realisable value is the estimated selling price less the estimated costs necessary to make the sale (IAS 2, para. 6): 17,000 − 1,500 = 15,500. Since inventories are measured at the lower of cost and net realisable value (IAS 2, para. 9), the batch is written down by 18,000 − 15,500 = 2,500; the expected selling price of a past collection no longer allows the whole cost to be recovered (IAS 2, para. 28).","es":""},"common_error":{"fr":"","en":"Omitting the commissions and writing down by only 1,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"cost","value":"18000","unit":"EUR"},{"id":"selling_price","value":"17000","unit":"EUR"},{"id":"selling_costs","value":"1500","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Cost of the batch","es":""},"value":"18000","unit":"EUR"},{"label":{"fr":"","en":"Estimated selling price","es":""},"value":"17000","unit":"EUR"},{"label":{"fr":"","en":"Estimated costs necessary to make the sale","es":""},"value":"1500","unit":"EUR"}],"steps":[{"id":"NRV","label":{"fr":"","en":"Net realisable value","es":""},"answer":15500,"tolerance":0,"unit":"EUR"},{"id":"WRITE_DOWN","label":{"fr":"","en":"Write-down","es":""},"answer":2500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"NRV","meaning":{"fr":"","en":"Net realisable value","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Estimated selling price","es":""},"value":17000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Estimated costs necessary to make the sale","es":""},"value":1500,"unit":"EUR"}],"result":15500,"unit":"EUR","rationale":{"fr":"","en":"Net realisable value is the estimated selling price less the estimated costs necessary to make the sale (IAS 2, para. 6): 17,000 − 1,500 = 15,500.","es":""}},{"step":"WRITE_DOWN","meaning":{"fr":"","en":"Write-down","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the batch","es":""},"value":18000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Net realisable value","es":""},"value":15500,"unit":"EUR"}],"result":2500,"unit":"EUR","rationale":{"fr":"","en":"Since inventories are measured at the lower of cost and net realisable value (IAS 2, para. 9), the batch is written down by 18,000 − 15,500 = 2,500","es":""}}],"references":["REF.IAS2.28","REF.IAS2.6","REF.IAS2.9"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000120","standard_id":"IAS2","concept_ids":["IAS2.NRV.WRITE_DOWN","IAS2.DEFINITIONS.KEY_TERMS","IAS2.MEASUREMENT.PRINCIPLE"],"dimension":"CALCULATION","context":"V1_VG.IAS2.000307","tested_point":"VG.IAS2.000307","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000002","section_id":"inventories-definition"},"references":["IAS 2 §28","IAS 2 §6","IAS 2 §9"],"exercise":{"prompt":{"fr":"","en":"At the reporting date, Charpentes Valdor holds a steel frame in the course of production, on which costs of {cost_incurred} have been incurred. Once completed, it is expected to be sold for {selling_price}. Estimated costs of completion of {completion_costs} remain to be incurred, and delivery and installation at the customer's site, borne by Valdor, will cost {selling_costs}. Determine the net realisable value of the work in progress and any write-down.","es":""},"explanation":{"fr":"","en":"Net realisable value is the estimated selling price less the estimated costs of completion and the estimated costs necessary to make the sale (IAS 2, para. 6): 75,000 − 9,000 − 5,000 = 61,000. Measured at the lower of cost and net realisable value (IAS 2, para. 9), the work in progress is written down by 64,000 − 61,000 = 3,000. Treating delivery and installation as costs of making the sale is case data; their weight makes part of the cost not recoverable (IAS 2, para. 28).","es":""},"common_error":{"fr":"","en":"Forgetting the costs of completion and concluding that no write-down is needed.","es":""},"format":"CALCULATION","placeholders":[{"id":"cost_incurred","value":"64000","unit":"EUR"},{"id":"selling_price","value":"75000","unit":"EUR"},{"id":"completion_costs","value":"9000","unit":"EUR"},{"id":"selling_costs","value":"5000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Cost incurred on the work in progress","es":""},"value":"64000","unit":"EUR"},{"label":{"fr":"","en":"Estimated selling price of the finished product","es":""},"value":"75000","unit":"EUR"},{"label":{"fr":"","en":"Estimated costs of completion","es":""},"value":"9000","unit":"EUR"},{"label":{"fr":"","en":"Delivery and installation costs","es":""},"value":"5000","unit":"EUR"}],"steps":[{"id":"NRV","label":{"fr":"","en":"Net realisable value","es":""},"answer":61000,"tolerance":0,"unit":"EUR"},{"id":"WRITE_DOWN","label":{"fr":"","en":"Write-down","es":""},"answer":3000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"NRV","meaning":{"fr":"","en":"Net realisable value","es":""},"expression":"a - b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Estimated selling price of the finished product","es":""},"value":75000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Estimated costs of completion","es":""},"value":9000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Delivery and installation costs","es":""},"value":5000,"unit":"EUR"}],"result":61000,"unit":"EUR","rationale":{"fr":"","en":"Net realisable value is the estimated selling price less the estimated costs of completion and the estimated costs necessary to make the sale (IAS 2, para. 6): 75,000 − 9,000 − 5,000 = 61,000.","es":""}},{"step":"WRITE_DOWN","meaning":{"fr":"","en":"Write-down","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost incurred on the work in progress","es":""},"value":64000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Net realisable value","es":""},"value":61000,"unit":"EUR"}],"result":3000,"unit":"EUR","rationale":{"fr":"","en":"Measured at the lower of cost and net realisable value (IAS 2, para. 9), the work in progress is written down by 64,000 − 61,000 = 3,000.","es":""}}],"references":["REF.IAS2.28","REF.IAS2.6","REF.IAS2.9"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000121","standard_id":"IAS2","concept_ids":["IAS2.NRV.WRITE_DOWN","IAS2.MEASUREMENT.PRINCIPLE"],"dimension":"CALCULATION","context":"V1_VG.IAS2.000308","tested_point":"VG.IAS2.000308","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000002","section_id":"measurement-principle"},"references":["IAS 2 §29","IAS 2 §9"],"exercise":{"prompt":{"fr":"","en":"At the reporting date, Sports Altitude holds three unrelated items that do not meet the conditions for grouping (case data): skis (cost {ski_cost}, net realisable value {ski_nrv}), tents (cost {tent_cost}, net realisable value {tent_nrv}) and GPS watches (cost {gps_cost}, net realisable value {gps_nrv}). Calculate the total write-down and the carrying amount of the three items after the write-down.","es":""},"explanation":{"fr":"","en":"The write-down is assessed item by item (IAS 2, para. 29) and each item is measured at the lower of its cost and net realisable value (IAS 2, para. 9). Skis: no write-down; tents: 8,000 − 6,500 = 1,500; GPS watches: 5,000 − 4,200 = 800; total write-down 2,300. Carrying amount: 10,000 + 6,500 + 4,200 = 20,700. A global comparison (cost 23,000, net realisable value 23,700) would wrongly hide the losses by offsetting them against the unrealised gain on the skis.","es":""},"common_error":{"fr":"","en":"Comparing totals and concluding that no write-down is needed.","es":""},"format":"CALCULATION","placeholders":[{"id":"ski_cost","value":"10000","unit":"EUR"},{"id":"ski_nrv","value":"13000","unit":"EUR"},{"id":"tent_cost","value":"8000","unit":"EUR"},{"id":"tent_nrv","value":"6500","unit":"EUR"},{"id":"gps_cost","value":"5000","unit":"EUR"},{"id":"gps_nrv","value":"4200","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Skis: cost","es":""},"value":"10000","unit":"EUR"},{"label":{"fr":"","en":"Skis: net realisable value","es":""},"value":"13000","unit":"EUR"},{"label":{"fr":"","en":"Tents: cost","es":""},"value":"8000","unit":"EUR"},{"label":{"fr":"","en":"Tents: net realisable value","es":""},"value":"6500","unit":"EUR"},{"label":{"fr":"","en":"GPS watches: cost","es":""},"value":"5000","unit":"EUR"},{"label":{"fr":"","en":"GPS watches: net realisable value","es":""},"value":"4200","unit":"EUR"}],"steps":[{"id":"WRITE_DOWN","label":{"fr":"","en":"Total write-down","es":""},"answer":2300,"tolerance":0,"unit":"EUR"},{"id":"CARRYING_AMOUNT","label":{"fr":"","en":"Carrying amount after the write-down","es":""},"answer":20700,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CARRYING_AMOUNT","meaning":{"fr":"","en":"Carrying amount after the write-down","es":""},"expression":"a + b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Skis: cost","es":""},"value":10000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tents: net realisable value","es":""},"value":6500,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"GPS watches: net realisable value","es":""},"value":4200,"unit":"EUR"}],"result":20700,"unit":"EUR"}],"rationale":{"fr":"","en":"The write-down is assessed item by item (IAS 2, para. 29) and each item is measured at the lower of its cost and net realisable value (IAS 2, para. 9).","es":""},"references":["REF.IAS2.29","REF.IAS2.9"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000122","standard_id":"IAS2","concept_ids":["IAS2.NRV.WRITE_DOWN","IAS2.DEFINITIONS.KEY_TERMS","IAS2.MEASUREMENT.PRINCIPLE"],"dimension":"CALCULATION","context":"V1_VG.IAS2.000308","tested_point":"VG.IAS2.000308","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000002","section_id":"inventories-definition"},"references":["IAS 2 §29","IAS 2 §6","IAS 2 §9","IAS 2 §28"],"exercise":{"prompt":{"fr":"","en":"Atelier Brunhilde manufactures furniture. At the reporting date, its inventories comprise three distinct, unrelated products. Finished lamps: cost {lamp_cost}, estimated selling price {lamp_price}, selling costs {lamp_selling_costs}. Finished tables: cost {table_cost}, estimated selling price {table_price}, selling costs {table_selling_costs}. Sideboards in progress: cost incurred {cabinet_cost}, estimated selling price once completed {cabinet_price}, costs of completion {cabinet_completion}, selling costs {cabinet_selling_costs}. Calculate the total write-down and the total carrying amount of these inventories.","es":""},"explanation":{"fr":"","en":"Net realisable value of each product (IAS 2, para. 6): lamps 50,000 − 3,000 = 47,000; tables 26,000 − 1,500 = 24,500; sideboards 16,000 − 2,000 − 800 = 13,200. Product-by-product comparison (IAS 2, para. 29 and 9): lamps, no write-down; tables 27,000 − 24,500 = 2,500; sideboards 15,000 − 13,200 = 1,800; total write-down 4,300. Carrying amount: 42,000 + 24,500 + 13,200 = 79,700. Total net realisable value (84,700) exceeds total cost (84,000), but such offsetting between unrelated products is not permitted; the level of selling prices and the costs of completion do not allow the whole cost to be recovered (IAS 2, para. 28).","es":""},"common_error":{"fr":"","en":"Offsetting the margin on lamps against losses on the other products.","es":""},"format":"CALCULATION","placeholders":[{"id":"lamp_cost","value":"42000","unit":"EUR"},{"id":"lamp_price","value":"50000","unit":"EUR"},{"id":"lamp_selling_costs","value":"3000","unit":"EUR"},{"id":"table_cost","value":"27000","unit":"EUR"},{"id":"table_price","value":"26000","unit":"EUR"},{"id":"table_selling_costs","value":"1500","unit":"EUR"},{"id":"cabinet_cost","value":"15000","unit":"EUR"},{"id":"cabinet_price","value":"16000","unit":"EUR"},{"id":"cabinet_completion","value":"2000","unit":"EUR"},{"id":"cabinet_selling_costs","value":"800","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Lamps: cost","es":""},"value":"42000","unit":"EUR"},{"label":{"fr":"","en":"Lamps: estimated selling price","es":""},"value":"50000","unit":"EUR"},{"label":{"fr":"","en":"Lamps: selling costs","es":""},"value":"3000","unit":"EUR"},{"label":{"fr":"","en":"Tables: cost","es":""},"value":"27000","unit":"EUR"},{"label":{"fr":"","en":"Tables: estimated selling price","es":""},"value":"26000","unit":"EUR"},{"label":{"fr":"","en":"Tables: selling costs","es":""},"value":"1500","unit":"EUR"},{"label":{"fr":"","en":"Sideboards: cost incurred","es":""},"value":"15000","unit":"EUR"},{"label":{"fr":"","en":"Sideboards: estimated selling price once completed","es":""},"value":"16000","unit":"EUR"},{"label":{"fr":"","en":"Sideboards: costs of completion","es":""},"value":"2000","unit":"EUR"},{"label":{"fr":"","en":"Sideboards: selling costs","es":""},"value":"800","unit":"EUR"}],"steps":[{"id":"WRITE_DOWN","label":{"fr":"","en":"Total write-down","es":""},"answer":4300,"tolerance":0,"unit":"EUR"},{"id":"CARRYING_AMOUNT","label":{"fr":"","en":"Total carrying amount","es":""},"answer":79700,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CARRYING_AMOUNT","meaning":{"fr":"","en":"Total carrying amount","es":""},"expression":"a + (b - c) + (d - e - f)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Lamps: cost","es":""},"value":42000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tables: estimated selling price","es":""},"value":26000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Tables: selling costs","es":""},"value":1500,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Sideboards: estimated selling price once completed","es":""},"value":16000,"unit":"EUR"},{"symbol":"e","meaning":{"fr":"","en":"Sideboards: costs of completion","es":""},"value":2000,"unit":"EUR"},{"symbol":"f","meaning":{"fr":"","en":"Sideboards: selling costs","es":""},"value":800,"unit":"EUR"}],"result":79700,"unit":"EUR"}],"references":["REF.IAS2.29","REF.IAS2.6","REF.IAS2.9","REF.IAS2.28"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000125","standard_id":"IAS2","concept_ids":["IAS2.NRV.WRITE_DOWN"],"dimension":"ANALYSIS","context":"V1_QST.IAS2.000125","tested_point":"QST.IAS2.000125","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000008","section_id":"indicators"},"references":["IAS 2 §29"],"exercise":{"prompt":{"fr":"","en":"The management accountant of Textiles Brenne compares the total cost of finished goods (500,000) with their total net realisable value (520,000) and concludes that no write-down is needed. However, the winter coat line, with a cost of 80,000, has a net realisable value of 62,000; for all other items, net realisable value exceeds cost. What is the error?","es":""},"explanation":{"fr":"","en":"Write-downs are assessed item by item, or by group of similar or related items where appropriate; assessing them on a whole classification such as all finished goods is not appropriate (IAS 2, para. 29). The winter coats must be written down by 80,000 − 62,000 = 18,000, without offsetting against the unrealised margin on other items.","es":""},"common_error":{"fr":"","en":"Assessing the write-down on a whole classification of inventories.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No error: the total net realisable value of finished goods exceeds their total cost, which is sufficient.","es":""},"correct":false,"feedback":{"fr":"","en":"A comparison at the level of the whole finished goods classification is not appropriate.","es":""}},{"id":"B","text":{"fr":"","en":"The global assessment by classification is inappropriate: the coats must be written down by 18,000.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Write the coats down by 80,000, i.e. their whole cost.","es":""},"correct":false,"feedback":{"fr":"","en":"The write-down brings the coats to their net realisable value of 62,000, not to zero: it amounts to 18,000.","es":""}},{"id":"D","text":{"fr":"","en":"The coats must be written down by 18,000, but this loss may be offset by the unrealised margin on the other items of the classification.","es":""},"correct":false,"feedback":{"fr":"","en":"Offsetting the loss against the unrealised margin on other items amounts to the global assessment that the standard rules out.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000126","standard_id":"IAS2","concept_ids":["IAS2.NRV.WRITE_DOWN"],"dimension":"APPLICATION","context":"V1_QST.IAS2.000126","tested_point":"QST.IAS2.000126","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000008","section_id":"indicators"},"references":["IAS 2 §30","IAS 2 §28"],"exercise":{"prompt":{"fr":"","en":"Câbleries du Rhône has a reporting date of 31 December 20X1. A batch of copper cables is held in inventory at a cost of 210,000; based on the price lists in force at the reporting date, its net realisable value was estimated at 230,000. On 20 January 20X2, before the financial statements are finalised, quality control discovers an insulation defect caused during manufacture and present before the reporting date; the batch is sold to a customer who accepts a discount, for an amount net of costs to sell of 185,000. Which measurement should be used at 31 December 20X1?","es":""},"explanation":{"fr":"","en":"Net realisable value is based on the most reliable evidence available when the estimate is made, including price changes relating to events after the end of the period that confirm conditions existing at the end of the period (IAS 2, para. 30). The defect existed at the reporting date: the January sale confirms a net realisable value of 185,000. The damaged batch is written down by 210,000 − 185,000 = 25,000 at 31 December 20X1 (IAS 2, para. 28). The characterisation of the event rests here on the facts given by the case.","es":""},"common_error":{"fr":"","en":"Ignoring any information known after the reporting date.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No write-down at 31 December 20X1: the information became known after the reporting date and only concerns 20X2.","es":""},"correct":false,"feedback":{"fr":"","en":"A subsequent event that confirms a condition existing at the reporting date is taken into account in the estimate.","es":""}},{"id":"B","text":{"fr":"","en":"A write-down of 25,000, bringing the batch down to 185,000.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A write-down of 45,000, equal to the difference between the initial estimate of 230,000 and the net price obtained.","es":""},"correct":false,"feedback":{"fr":"","en":"The write-down is measured against the cost of 210,000, not against the initial estimate.","es":""}},{"id":"D","text":{"fr":"","en":"A write-down of 25,000 recognised only in 20X2, the year in which the sale took place.","es":""},"correct":false,"feedback":{"fr":"","en":"The condition existed at the reporting date: the write-down is recognised at 31 December 20X1.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000127","standard_id":"IAS2","concept_ids":["IAS2.NRV.WRITE_DOWN"],"dimension":"APPLICATION","context":"V1_QST.IAS2.000127","tested_point":"QST.IAS2.000127","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000008","section_id":"indicators"},"references":["IAS 2 §29"],"exercise":{"prompt":{"fr":"","en":"Conserverie Port-Lazare produces three ranges: canned sardines in three sauces (same purposes, produced and sold in the same geographical area, and which in practice cannot be evaluated separately from one another), soups in cartons and pet food. These ranges belong to two operating segments. At what level should the write-down of the sardines to net realisable value be assessed?","es":""},"explanation":{"fr":"","en":"Write-downs are in principle assessed item by item; grouping may be appropriate for items of the same product line with similar purposes, produced and marketed in the same geographical area and that cannot practicably be evaluated separately; writing down on the basis of a whole classification or of all the inventories of an operating segment is not appropriate (IAS 2, para. 29). The sardine line has these features here, according to the facts of the case: grouping is a matter of the entity's judgement and must be documented.","es":""},"common_error":{"fr":"","en":"Extending grouping to a whole operating segment.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"At the level of the sardine line taken together.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"At the level of all the finished goods of the cannery, sardines, soups and pet food together.","es":""},"correct":false,"feedback":{"fr":"","en":"A whole classification such as all finished goods is not an appropriate level.","es":""}},{"id":"C","text":{"fr":"","en":"At the level of the operating segment to which the sardines belong, together with the other products of that segment.","es":""},"correct":false,"feedback":{"fr":"","en":"Writing down on the basis of all the inventories of an operating segment is not appropriate.","es":""}},{"id":"D","text":{"fr":"","en":"Necessarily can by can and sauce by sauce, as any grouping is prohibited by the standard.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard allows grouping of similar or related items where appropriate.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000129","standard_id":"IAS2","concept_ids":["IAS2.NRV.SPECIFIC_SITUATIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000129","tested_point":"QST.IAS2.000129","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000008","section_id":"firm-contracts"},"references":["IAS 2 §31"],"exercise":{"prompt":{"fr":"","en":"Ternoval has signed firm sales contracts covering a quantity of wood pellets greater than the quantity it holds in inventory. True or false: any provision needed for the contractual quantity in excess of the inventories held is determined under the net realisable value rules of IAS 2.","es":""},"explanation":{"fr":"","en":"False. IAS 2 deals with the net realisable value of inventories held: for the quantity held to satisfy firm contracts, it is based on the contract price. Provisions that may arise from firm sales contracts in excess of inventory quantities, like those arising from firm purchase contracts, are dealt with under IAS 37 (IAS 2, para. 31). IAS 2 does not deal with how such a provision is measured.","es":""},"common_error":{"fr":"","en":"Extending the IAS 2 net realisable value to quantities the entity does not hold.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000130","standard_id":"IAS2","concept_ids":["IAS2.NRV.SPECIFIC_SITUATIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000130","tested_point":"QST.IAS2.000130","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000008","section_id":"firm-contracts"},"references":["IAS 2 §31"],"exercise":{"prompt":{"fr":"","en":"The trader Ardelle holds 800 tonnes of soybean meal. It has entered into a firm sales contract covering 500 tonnes at a fixed price. On what basis is the net realisable value of the 300 tonnes not covered by this contract estimated?","es":""},"explanation":{"fr":"","en":"Net realisable value takes into account the purpose for which inventories are held: the 500 tonnes held for the firm contract are measured on the contract price, while the excess of 300 tonnes is measured on the basis of general selling prices (IAS 2, para. 31).","es":""},"common_error":{"fr":"","en":"Applying the contract price to the 800 tonnes held.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"On the firm contract price, which then applies to the whole inventory held by the trader.","es":""},"correct":false,"feedback":{"fr":"","en":"The contract price only applies to the quantity covered by the contract; extending it to the whole inventory misstates the excess.","es":""}},{"id":"B","text":{"fr":"","en":"On general selling prices, not on the contract price.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"On the replacement cost of the soybean meal at the year-end, the only observable measure for a trader.","es":""},"correct":false,"feedback":{"fr":"","en":"Replacement cost is not the basis set for this excess: IAS 2 uses general selling prices.","es":""}},{"id":"D","text":{"fr":"","en":"On their costs of purchase, since inventories not covered by a contract are not compared with a net realisable value.","es":""},"correct":false,"feedback":{"fr":"","en":"All inventories are measured at the lower of cost and net realisable value, whether or not they are covered by a contract.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000131","standard_id":"IAS2","concept_ids":["IAS2.NRV.SPECIFIC_SITUATIONS"],"dimension":"CALCULATION","context":"V1_VG.IAS2.000401","tested_point":"VG.IAS2.000401","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000008","section_id":"firm-contracts"},"references":["IAS 2 §31"],"exercise":{"prompt":{"fr":"","en":"At the year-end, Kalvéra holds {units_held} dosing pumps with a unit cost of {unit_cost}. It has entered into a firm sales contract for {contract_units} pumps at a unit price of {contract_price}. The remaining pumps will be sold at the general selling price, estimated at {general_price} per unit. Costs necessary to make the sale are estimated at {costs_to_sell} per pump for all sales (case data). Compute the write-down to recognise and the carrying amount of the pumps after the write-down.","es":""},"explanation":{"fr":"","en":"Net realisable value takes into account the purpose for which inventories are held: the 600 pumps held for the firm contract are measured on the contract price, the 400 excess pumps on the general selling price (IAS 2, para. 31). Pumps under contract: 95 − 5 = 90, above the cost of 80, so no write-down. Excess pumps: 70 − 5 = 65, below cost, hence a write-down of (80 − 65) × 400 = 6,000. Carrying amount: 600 × 80 + 400 × 65 = 48,000 + 26,000 = 74,000. Prices and selling costs are case data.","es":""},"common_error":{"fr":"","en":"Applying the contract price to all 1,000 pumps, which leads to recognising no write-down.","es":""},"format":"CALCULATION","placeholders":[{"id":"units_held","value":"1000","unit":"UNITS"},{"id":"unit_cost","value":"80","unit":"EUR"},{"id":"contract_units","value":"600","unit":"UNITS"},{"id":"contract_price","value":"95","unit":"EUR"},{"id":"general_price","value":"70","unit":"EUR"},{"id":"costs_to_sell","value":"5","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Number of pumps held","es":""},"value":"1000","unit":"UNITS"},{"label":{"fr":"","en":"Unit cost","es":""},"value":"80","unit":"EUR"},{"label":{"fr":"","en":"Pumps covered by the firm contract","es":""},"value":"600","unit":"UNITS"},{"label":{"fr":"","en":"Contract unit price","es":""},"value":"95","unit":"EUR"},{"label":{"fr":"","en":"General unit selling price","es":""},"value":"70","unit":"EUR"},{"label":{"fr":"","en":"Estimated selling costs per pump","es":""},"value":"5","unit":"EUR"}],"steps":[{"id":"WRITE_DOWN","label":{"fr":"","en":"Write-down to recognise","es":""},"answer":6000,"tolerance":0,"unit":"EUR"},{"id":"CARRYING_AMOUNT","label":{"fr":"","en":"Carrying amount of the pumps after the write-down","es":""},"answer":74000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000132","standard_id":"IAS2","concept_ids":["IAS2.NRV.SPECIFIC_SITUATIONS"],"dimension":"CALCULATION","context":"V1_VG.IAS2.000401","tested_point":"VG.IAS2.000401","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000008","section_id":"firm-contracts"},"references":["IAS 2 §31"],"exercise":{"prompt":{"fr":"","en":"Caves Dorvalle holds {units_held} bottles of the same vintage, with a unit cost of {unit_cost}. To sell part of the lot, it has signed a firm sales contract with a restaurant owner for {contract_units} bottles at a unit price of {contract_price}. The rest of the lot sells at the current price of {general_price} per bottle. Estimated costs necessary to make the sale amount to {costs_to_sell} per bottle (case data). Determine the write-down of the lot and its carrying amount at the year-end.","es":""},"explanation":{"fr":"","en":"The bottles reserved for the firm contract are measured on the contract price, the excess on general selling prices (IAS 2, para. 31). Bottles under contract: 11 − 1 = 10, below the cost of 12, hence a write-down of (12 − 10) × 1,500 = 3,000. Excess bottles: 16 − 1 = 15, above cost, so no write-down; the net realisable value of the 1,500 bottles held for the contract is based on the contract price (IAS 2, para. 31): they are compared with their cost on that basis, without offsetting against the margin expected on the excess (application adopted in this case). Carrying amount: 1,500 × 10 + 1,000 × 12 = 15,000 + 12,000 = 27,000. Prices and selling costs are case data.","es":""},"common_error":{"fr":"","en":"Applying the contract price to all 2,500 bottles, which gives a write-down of 5,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"units_held","value":"2500","unit":"UNITS"},{"id":"unit_cost","value":"12","unit":"EUR"},{"id":"contract_units","value":"1500","unit":"UNITS"},{"id":"contract_price","value":"11","unit":"EUR"},{"id":"general_price","value":"16","unit":"EUR"},{"id":"costs_to_sell","value":"1","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Bottles held","es":""},"value":"2500","unit":"UNITS"},{"label":{"fr":"","en":"Unit cost of a bottle","es":""},"value":"12","unit":"EUR"},{"label":{"fr":"","en":"Bottles reserved for the firm contract","es":""},"value":"1500","unit":"UNITS"},{"label":{"fr":"","en":"Contract unit price","es":""},"value":"11","unit":"EUR"},{"label":{"fr":"","en":"Current selling price","es":""},"value":"16","unit":"EUR"},{"label":{"fr":"","en":"Estimated selling costs per bottle","es":""},"value":"1","unit":"EUR"}],"steps":[{"id":"WRITE_DOWN","label":{"fr":"","en":"Write-down of the lot","es":""},"answer":3000,"tolerance":0,"unit":"EUR"},{"id":"CARRYING_AMOUNT","label":{"fr":"","en":"Carrying amount of the lot at the year-end","es":""},"answer":27000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"WRITE_DOWN","meaning":{"fr":"","en":"Write-down of the lot","es":""},"expression":"(a - (b - c)) * d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Unit cost of a bottle","es":""},"value":12,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Contract unit price","es":""},"value":11,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Estimated selling costs per bottle","es":""},"value":1,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Bottles reserved for the firm contract","es":""},"value":1500,"unit":"UNITS"}],"result":3000,"unit":"EUR"}],"references":["REF.IAS2.31"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000133","standard_id":"IAS2","concept_ids":["IAS2.NRV.SPECIFIC_SITUATIONS","IAS2.MEASUREMENT.PRINCIPLE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000133","tested_point":"QST.IAS2.000133","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000002","section_id":"measurement-principle"},"references":["IAS 2 §32","IAS 2 §9"],"exercise":{"prompt":{"fr":"","en":"Ferlune manufactures cast-iron radiators. At the year-end, the market price of the pig iron it holds in inventory has fallen. Select the correct statements on the measurement of this inventory of materials.","es":""},"explanation":{"fr":"","en":"Raw materials keep their cost as long as the products they will go into are expected to sell for at least their own cost. Only when a decline in the price of materials indicates that the cost of the finished products will exceed net realisable value are the materials written down, replacement cost then possibly being the best available measure (IAS 2, para. 32). Inventories remain measured at the lower of cost and net realisable value, never above cost (IAS 2, para. 9).","es":""},"common_error":{"fr":"","en":"Writing down materials whose price falls although the finished products are still sold at a margin.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Any fall in the price of pig iron requires the pig iron inventory to be reduced to its replacement cost.","es":""},"correct":false,"feedback":{"fr":"","en":"A fall in the price of the material is not enough: the finished product must no longer be expected to sell at least at cost.","es":""}},{"id":"B","text":{"fr":"","en":"The pig iron stays at cost as long as the radiators made from it are expected to sell for at least their cost.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"If the price of pig iron rises above its cost, the pig iron inventory may be carried at that higher price.","es":""},"correct":false,"feedback":{"fr":"","en":"Inventories are measured at the lower of cost and net realisable value: no remeasurement above cost is possible.","es":""}},{"id":"D","text":{"fr":"","en":"If the fall in the price of pig iron indicates that the cost of the radiators will exceed their net realisable value, the pig iron is written down.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"In that latter case, the replacement cost of the pig iron may be the best available measure of its net realisable value.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000134","standard_id":"IAS2","concept_ids":["IAS2.NRV.SPECIFIC_SITUATIONS","IAS2.NRV.WRITE_DOWN"],"dimension":"APPLICATION","context":"V1_QST.IAS2.000134","tested_point":"QST.IAS2.000134","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000008","section_id":"indicators"},"references":["IAS 2 §32","IAS 2 §29"],"exercise":{"prompt":{"fr":"","en":"Atelier Norvane manufactures city bikes and racing frames. At the year-end, it holds two raw materials. Aluminium (cost €60,000, replacement cost €52,000) is used in the city bikes, whose expected unit cost is €400 for a net realisable value of €520. Carbon fibre (cost €90,000, replacement cost €75,000) is used in the racing frames, whose expected unit cost is €1,300 for a net realisable value of €1,150; the carbon fibre inventory is sufficient for 100 frames. For carbon fibre, management considers replacement cost to be the best available measure of its net realisable value. Which conclusion should be reached?","es":""},"explanation":{"fr":"","en":"Aluminium is not written down despite the fall in its replacement cost, because the city bikes are expected to be sold above cost (€520 against €400). For carbon fibre, the expected cost of the frames (€1,300) exceeds their net realisable value (€1,150): the material is written down and its replacement cost may be the best available measure (IAS 2, para. 32), which management retains as a judgement. Write-down: 90,000 − 75,000 = €15,000. Consistency check: the loss expected on the frames made from this inventory, 100 × (1,300 − 1,150) = €15,000, matches the write-down obtained with replacement cost, which supports management's judgement. Write-downs are assessed item by item: the margin on the bikes does not offset the loss on the frames (IAS 2, para. 29).","es":""},"common_error":{"fr":"","en":"Writing down a material whose price falls although the finished product is still sold at a margin.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Write down aluminium by €8,000 and carbon fibre by €15,000, i.e. €23,000 in total.","es":""},"correct":false,"feedback":{"fr":"","en":"Aluminium is not written down: the bikes incorporating it are still sold above cost.","es":""}},{"id":"B","text":{"fr":"","en":"Do not write down aluminium and reduce carbon fibre to €75,000, i.e. a write-down of €15,000.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Write down neither material, since raw materials are never written down before being incorporated into a finished product.","es":""},"correct":false,"feedback":{"fr":"","en":"Materials are written down when the fall in their price indicates that the cost of the finished products will exceed net realisable value.","es":""}},{"id":"D","text":{"fr":"","en":"Write down nothing, since the margin expected on the city bikes offsets the loss expected on the racing frames.","es":""},"correct":false,"feedback":{"fr":"","en":"Write-downs are assessed item by item: the margin on one product is not offset against the loss on another.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000135","standard_id":"IAS2","concept_ids":["IAS2.NRV.SPECIFIC_SITUATIONS"],"dimension":"CALCULATION","context":"V1_VG.IAS2.000402","tested_point":"VG.IAS2.000402","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":210,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000008","section_id":"firm-contracts"},"references":["IAS 2 §32"],"exercise":{"prompt":{"fr":"","en":"Fonderie Brésal holds {quantity} kg of an alloy purchased at a cost of {unit_cost} per kg. At the year-end, the price of the alloy has collapsed: its replacement cost is {replacement_cost} per kg. Each casting uses {kg_per_casting} kg of alloy. The castings made from this alloy have an expected production cost of {finished_cost} per casting, for an estimated net realisable value of {finished_nrv} per casting. Management considers, as a documented judgement, that replacement cost is the best available measure of the net realisable value of the alloy. Compute the write-down of the alloy and its carrying amount.","es":""},"explanation":{"fr":"","en":"The expected cost of the castings (310) exceeds their net realisable value (290): the fall in the price of the alloy therefore leads to writing it down, and its replacement cost may be the best available measure of its net realisable value (IAS 2, para. 32). The choice of this measure is here a judgement of management. Write-down: (25 − 21) × 4,000 = 16,000. Carrying amount: 4,000 × 21 = 84,000. Consistency check: the inventory is sufficient for 4,000 / 5 = 800 castings, whose expected loss, 800 × (310 − 290) = 16,000, matches the write-down obtained with replacement cost, which supports management's judgement.","es":""},"common_error":{"fr":"","en":"Leaving the alloy at cost on the grounds that a raw material is never written down.","es":""},"format":"CALCULATION","placeholders":[{"id":"quantity","value":"4000","unit":"UNITS"},{"id":"unit_cost","value":"25","unit":"EUR"},{"id":"replacement_cost","value":"21","unit":"EUR"},{"id":"finished_cost","value":"310","unit":"EUR"},{"id":"finished_nrv","value":"290","unit":"EUR"},{"id":"kg_per_casting","value":"5","unit":"UNITS"}],"data":[{"label":{"fr":"","en":"Quantity of alloy (kg)","es":""},"value":"4000","unit":"UNITS"},{"label":{"fr":"","en":"Cost of the alloy per kg","es":""},"value":"25","unit":"EUR"},{"label":{"fr":"","en":"Replacement cost per kg","es":""},"value":"21","unit":"EUR"},{"label":{"fr":"","en":"Expected production cost of a casting","es":""},"value":"310","unit":"EUR"},{"label":{"fr":"","en":"Net realisable value of a casting","es":""},"value":"290","unit":"EUR"},{"label":{"fr":"","en":"Alloy used per casting (kg)","es":""},"value":"5","unit":"UNITS"}],"steps":[{"id":"WRITE_DOWN","label":{"fr":"","en":"Write-down of the alloy","es":""},"answer":16000,"tolerance":0,"unit":"EUR"},{"id":"CARRYING_AMOUNT","label":{"fr":"","en":"Carrying amount of the alloy after the write-down","es":""},"answer":84000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"WRITE_DOWN","meaning":{"fr":"","en":"Write-down of the alloy","es":""},"expression":"(a - b) * c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the alloy per kg","es":""},"value":25,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Replacement cost per kg","es":""},"value":21,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Quantity of alloy (kg)","es":""},"value":4000,"unit":"UNITS"}],"result":16000,"unit":"EUR"},{"step":"CARRYING_AMOUNT","meaning":{"fr":"","en":"Carrying amount of the alloy after the write-down","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Quantity of alloy (kg)","es":""},"value":4000,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Replacement cost per kg","es":""},"value":21,"unit":"EUR"}],"result":84000,"unit":"EUR"}],"rationale":{"fr":"","en":"The expected cost of the castings (310) exceeds their net realisable value (290): the fall in the price of the alloy therefore leads to writing it down, and its replacement cost may be the best available measure of its net realisable value (IAS 2, para. 32).","es":""},"references":["REF.IAS2.32"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000136","standard_id":"IAS2","concept_ids":["IAS2.NRV.SPECIFIC_SITUATIONS"],"dimension":"CALCULATION","context":"V1_VG.IAS2.000402","tested_point":"VG.IAS2.000402","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":210,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000008","section_id":"firm-contracts"},"references":["IAS 2 §32"],"exercise":{"prompt":{"fr":"","en":"The chocolate maker Cacaoria has built up an inventory of {quantity} kg of cocoa beans, paid {unit_cost} per kg. An exceptional harvest drives prices down: at the year-end, these beans could be bought back at {replacement_cost} per kg. The fall in cocoa prices passes through to the selling prices of gift boxes: the expected cost of a box, which uses {kg_per_box} kg of beans, is {finished_cost} while its net realisable value is now only {finished_nrv}. After analysis, management retains replacement cost as the best available measure of the net realisable value of the beans. What write-down should be recognised on the beans, and at what carrying amount?","es":""},"explanation":{"fr":"","en":"The boxes will no longer be sold at cost (44 against 48): the fall in the price of the beans indicates that the cost of the finished products will exceed their net realisable value, which leads to writing the beans down; their replacement cost may be the best available measure of their net realisable value (IAS 2, para. 32), a choice that here rests on management's judgement. Write-down: (9 − 7) × 15,000 = 30,000. Carrying amount: 15,000 × 7 = 105,000. Consistency check: the inventory is sufficient for 15,000 / 2 = 7,500 boxes, whose expected loss, 7,500 × (48 − 44) = 30,000, matches the write-down obtained with replacement cost, which supports management's judgement.","es":""},"common_error":{"fr":"","en":"Concluding that no write-down is needed because the beans have not yet been processed.","es":""},"format":"CALCULATION","placeholders":[{"id":"quantity","value":"15000","unit":"UNITS"},{"id":"unit_cost","value":"9","unit":"EUR"},{"id":"replacement_cost","value":"7","unit":"EUR"},{"id":"finished_cost","value":"48","unit":"EUR"},{"id":"finished_nrv","value":"44","unit":"EUR"},{"id":"kg_per_box","value":"2","unit":"UNITS"}],"data":[{"label":{"fr":"","en":"Cocoa beans in inventory (kg)","es":""},"value":"15000","unit":"UNITS"},{"label":{"fr":"","en":"Cost of purchase per kg","es":""},"value":"9","unit":"EUR"},{"label":{"fr":"","en":"Replacement cost per kg at the year-end","es":""},"value":"7","unit":"EUR"},{"label":{"fr":"","en":"Expected cost of a box","es":""},"value":"48","unit":"EUR"},{"label":{"fr":"","en":"Net realisable value of a box","es":""},"value":"44","unit":"EUR"},{"label":{"fr":"","en":"Beans used per box (kg)","es":""},"value":"2","unit":"UNITS"}],"steps":[{"id":"WRITE_DOWN","label":{"fr":"","en":"Write-down of the beans","es":""},"answer":30000,"tolerance":0,"unit":"EUR"},{"id":"CARRYING_AMOUNT","label":{"fr":"","en":"Carrying amount of the beans","es":""},"answer":105000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"WRITE_DOWN","meaning":{"fr":"","en":"Write-down of the beans","es":""},"expression":"(a - b) * c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of purchase per kg","es":""},"value":9,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Replacement cost per kg at the year-end","es":""},"value":7,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Cocoa beans in inventory (kg)","es":""},"value":15000,"unit":"UNITS"}],"result":30000,"unit":"EUR"},{"step":"CARRYING_AMOUNT","meaning":{"fr":"","en":"Carrying amount of the beans","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cocoa beans in inventory (kg)","es":""},"value":15000,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Replacement cost per kg at the year-end","es":""},"value":7,"unit":"EUR"}],"result":105000,"unit":"EUR"}],"references":["REF.IAS2.32"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000137","standard_id":"IAS2","concept_ids":["IAS2.NRV.REVERSAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000137","tested_point":"QST.IAS2.000137","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000009","section_id":"reassessment-rule"},"references":["IAS 2 §33"],"exercise":{"prompt":{"fr":"","en":"Lumen wrote down at the end of 20X1 a batch of desk lamps, still in inventory, after a fall in their selling price. In 20X2, the selling price of this model rises markedly following a change in economic circumstances. True or false: a write-down of inventories recognised in a prior period can never be reversed.","es":""},"explanation":{"fr":"","en":"False. Net realisable value is re-estimated at each reporting date. If the reasons for the write-down have gone, or if net realisable value has clearly risen because the economic situation has changed, the write-down is reversed, never by more than its original amount (IAS 2, para. 33). This is precisely the case of an item still in inventory whose selling price recovers.","es":""},"common_error":{"fr":"","en":"Treating the written-down amount as a new, final cost.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000138","standard_id":"IAS2","concept_ids":["IAS2.NRV.REVERSAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000138","tested_point":"QST.IAS2.000138","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000009","section_id":"reassessment-rule"},"references":["IAS 2 §33"],"exercise":{"prompt":{"fr":"","en":"Which of the following situations, observed at the year-end at a garden equipment distributor, leads to the reversal of a write-down of inventories?","es":""},"explanation":{"fr":"","en":"A write-down is reversed when the circumstances that caused it no longer exist or when there is clear evidence of an increase in net realisable value because of changed economic circumstances, as for an item still in inventory whose selling price recovers. The reversal is limited to the amount of the original write-down (IAS 2, para. 33).","es":""},"common_error":{"fr":"","en":"Confusing an increase in net realisable value with an increase in purchase cost.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"For its lawnmowers, the distributor replaces the first-in, first-out (FIFO) formula with the weighted average cost formula.","es":""},"correct":false,"feedback":{"fr":"","en":"A change of cost formula is not an increase in net realisable value and triggers no reversal.","es":""}},{"id":"B","text":{"fr":"","en":"The selling price of lawnmowers still in inventory, written down last year after a fall in that price, rises because of a change in economic circumstances.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The net realisable value of leaf blowers that were never written down now far exceeds their cost, which would justify carrying them at that higher value.","es":""},"correct":false,"feedback":{"fr":"","en":"Without a previous write-down, there is nothing to reverse; and a reversal never carries an item above its cost.","es":""}},{"id":"D","text":{"fr":"","en":"The purchase cost of new batches of hedge trimmers rises sharply, while their selling price stays unchanged.","es":""},"correct":false,"feedback":{"fr":"","en":"A rise in purchase cost does not raise net realisable value, which depends on the expected selling price.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000139","standard_id":"IAS2","concept_ids":["IAS2.NRV.REVERSAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000139","tested_point":"QST.IAS2.000139","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000009","section_id":"reassessment-rule"},"references":["IAS 2 §33"],"exercise":{"prompt":{"fr":"","en":"The management accountant of Pivelle is preparing an internal memo on reversals of inventory write-downs. Select the correct statements.","es":""},"explanation":{"fr":"","en":"Net realisable value is reassessed in each period; when a write-down is reversed, the reversal is limited to the amount of the original write-down so that the new carrying amount is the lower of cost and the revised net realisable value (IAS 2, para. 33).","es":""},"common_error":{"fr":"","en":"Reversing more than the original write-down and carrying the inventory above cost.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The reversal may carry the carrying amount above cost when the revised net realisable value exceeds it.","es":""},"correct":false,"feedback":{"fr":"","en":"The reversal is capped at the amount originally written down: the carrying amount never exceeds cost.","es":""}},{"id":"B","text":{"fr":"","en":"The reversal is limited to the amount of the original write-down.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"After the reversal, the carrying amount equals the lower of cost and the revised net realisable value.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Net realisable value is reassessed only when the entity changes accounting policy.","es":""},"correct":false,"feedback":{"fr":"","en":"The reassessment takes place in each period, regardless of any change of policy.","es":""}},{"id":"E","text":{"fr":"","en":"Net realisable value is reassessed in each period.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000140","standard_id":"IAS2","concept_ids":["IAS2.NRV.REVERSAL"],"dimension":"CALCULATION","context":"V1_VG.IAS2.000403","tested_point":"VG.IAS2.000403","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000009","section_id":"reassessment-rule"},"references":["IAS 2 §33"],"exercise":{"prompt":{"fr":"","en":"At the end of 20X1, Carrelia reduced a batch of ceramic tiles, with a cost of {cost}, to its net realisable value of {carrying_before}. At the end of 20X2, the batch is still in inventory; the recovery of the construction market has pushed prices up and the revised net realisable value of the batch is {revised_nrv}. Compute the reversal of the write-down and the new carrying amount of the batch.","es":""},"explanation":{"fr":"","en":"Original write-down: 50,000 − 38,000 = 12,000. The new carrying amount is the lower of cost (50,000) and the revised net realisable value (45,000), i.e. 45,000. Reversal: 45,000 − 38,000 = 7,000, below the original write-down (IAS 2, para. 33).","es":""},"common_error":{"fr":"","en":"Reversing the whole original write-down although net realisable value is still below cost.","es":""},"format":"CALCULATION","placeholders":[{"id":"cost","value":"50000","unit":"EUR"},{"id":"carrying_before","value":"38000","unit":"EUR"},{"id":"revised_nrv","value":"45000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Cost of the batch","es":""},"value":"50000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount after the 20X1 write-down","es":""},"value":"38000","unit":"EUR"},{"label":{"fr":"","en":"Revised net realisable value at the end of 20X2","es":""},"value":"45000","unit":"EUR"}],"steps":[{"id":"REVERSAL","label":{"fr":"","en":"Reversal of the write-down in 20X2","es":""},"answer":7000,"tolerance":0,"unit":"EUR"},{"id":"NEW_CARRYING_AMOUNT","label":{"fr":"","en":"New carrying amount of the batch","es":""},"answer":45000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"REVERSAL","meaning":{"fr":"","en":"Reversal of the write-down in 20X2","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Revised net realisable value at the end of 20X2","es":""},"value":45000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Carrying amount after the 20X1 write-down","es":""},"value":38000,"unit":"EUR"}],"result":7000,"unit":"EUR"}],"rationale":{"fr":"","en":"Reversal: 45,000 − 38,000 = 7,000, below the original write-down (IAS 2, para. 33).","es":""},"references":["REF.IAS2.33"]}},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS2.000141","standard_id":"IAS2","concept_ids":["IAS2.NRV.REVERSAL"],"dimension":"CALCULATION","context":"V1_VG.IAS2.000403","tested_point":"VG.IAS2.000403","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000009","section_id":"reassessment-rule"},"references":["IAS 2 §33"],"exercise":{"prompt":{"fr":"","en":"A batch of garden furniture purchased for {cost} by the retailer Jardiflor was carried in the statement of financial position at the end of 20X1 at {carrying_before}, after a write-down caused by a rainy summer. One year later, the batch has not been sold, but strong seasonal demand makes it possible to estimate its net realisable value at {revised_nrv}. What amounts does Jardiflor retain for the reversal and for the carrying amount of the batch at the end of 20X2?","es":""},"explanation":{"fr":"","en":"Original write-down: 26,000 − 20,000 = 6,000. The revised net realisable value (31,000) exceeds cost: the new carrying amount is capped at the cost of 26,000 and the reversal is limited to the amount of the original write-down, i.e. 6,000 (IAS 2, para. 33). The difference between 31,000 and 26,000 is not recognised.","es":""},"common_error":{"fr":"","en":"Reversing 11,000 by carrying the batch at its net realisable value of 31,000, above its cost.","es":""},"format":"CALCULATION","placeholders":[{"id":"cost","value":"26000","unit":"EUR"},{"id":"carrying_before","value":"20000","unit":"EUR"},{"id":"revised_nrv","value":"31000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Cost of purchase of the batch","es":""},"value":"26000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount at the end of 20X1","es":""},"value":"20000","unit":"EUR"},{"label":{"fr":"","en":"Estimated net realisable value at the end of 20X2","es":""},"value":"31000","unit":"EUR"}],"steps":[{"id":"REVERSAL","label":{"fr":"","en":"Reversal recognised in 20X2","es":""},"answer":6000,"tolerance":0,"unit":"EUR"},{"id":"NEW_CARRYING_AMOUNT","label":{"fr":"","en":"Carrying amount of the batch at the end of 20X2","es":""},"answer":26000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"REVERSAL","meaning":{"fr":"","en":"Reversal recognised in 20X2","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of purchase of the batch","es":""},"value":26000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Carrying amount at the end of 20X1","es":""},"value":20000,"unit":"EUR"}],"result":6000,"unit":"EUR"}],"rationale":{"fr":"","en":"The revised net realisable value (31,000) exceeds cost: the new carrying amount is capped at the cost of 26,000 and the reversal is limited to the amount of the original write-down, i.e. 6,000 (IAS 2, para. 33).","es":""},"references":["REF.IAS2.33"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000142","standard_id":"IAS2","concept_ids":["IAS2.NRV.REVERSAL"],"dimension":"CALCULATION","context":"V1_VG.IAS2.000404","tested_point":"VG.IAS2.000404","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":210,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000009","section_id":"reassessment-rule"},"references":["IAS 2 §33"],"exercise":{"prompt":{"fr":"","en":"At the end of 20X1, the distributor Optivue wrote down three batches of spectacle frames. At the end of 20X2, the situation is as follows: the Azur batch (cost {azur_cost}, carrying amount {azur_carrying}) has a revised net realisable value of {azur_nrv}; the Brume batch (cost {brume_cost}, carrying amount {brume_carrying}) has a revised net realisable value of {brume_nrv}; the Corail batch was entirely sold during 20X2. The increases in net realisable value result from a change in economic circumstances. Compute, item by item, the total reversals for 20X2 and the total carrying amount of the batches still held.","es":""},"explanation":{"fr":"","en":"Each batch is dealt with separately and its new carrying amount is the lower of cost and the revised net realisable value (IAS 2, para. 33). Azur: lower of 18,000 and 20,000, i.e. 18,000; reversal of 6,000, equal to the original write-down. Brume: lower of 9,000 and 8,000, i.e. 8,000; reversal of 1,000. The Corail batch, sold, is no longer part of the inventories to be reassessed: its carrying amount, net of the 20X1 write-down, was recognised as an expense when it was sold, with no reversal. Total reversals: 6,000 + 1,000 = 7,000; total carrying amount: 18,000 + 8,000 = 26,000.","es":""},"common_error":{"fr":"","en":"Carrying the Azur batch at 20,000, above its cost.","es":""},"format":"CALCULATION","placeholders":[{"id":"azur_cost","value":"18000","unit":"EUR"},{"id":"azur_carrying","value":"12000","unit":"EUR"},{"id":"azur_nrv","value":"20000","unit":"EUR"},{"id":"brume_cost","value":"9000","unit":"EUR"},{"id":"brume_carrying","value":"7000","unit":"EUR"},{"id":"brume_nrv","value":"8000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Cost of the Azur batch","es":""},"value":"18000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of the Azur batch at the end of 20X1","es":""},"value":"12000","unit":"EUR"},{"label":{"fr":"","en":"Revised net realisable value of the Azur batch","es":""},"value":"20000","unit":"EUR"},{"label":{"fr":"","en":"Cost of the Brume batch","es":""},"value":"9000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of the Brume batch at the end of 20X1","es":""},"value":"7000","unit":"EUR"},{"label":{"fr":"","en":"Revised net realisable value of the Brume batch","es":""},"value":"8000","unit":"EUR"}],"steps":[{"id":"TOTAL_REVERSAL","label":{"fr":"","en":"Total reversals for 20X2","es":""},"answer":7000,"tolerance":0,"unit":"EUR"},{"id":"TOTAL_CARRYING_AMOUNT","label":{"fr":"","en":"Total carrying amount of the batches held at the end of 20X2","es":""},"answer":26000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"TOTAL_CARRYING_AMOUNT","meaning":{"fr":"","en":"Total carrying amount of the batches held at the end of 20X2","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the Azur batch","es":""},"value":18000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Revised net realisable value of the Brume batch","es":""},"value":8000,"unit":"EUR"}],"result":26000,"unit":"EUR"}],"rationale":{"fr":"","en":"Each batch is dealt with separately and its new carrying amount is the lower of cost and the revised net realisable value (IAS 2, para. 33).","es":""},"references":["REF.IAS2.33"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000143","standard_id":"IAS2","concept_ids":["IAS2.NRV.REVERSAL"],"dimension":"CALCULATION","context":"V1_VG.IAS2.000404","tested_point":"VG.IAS2.000404","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":210,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000009","section_id":"reassessment-rule"},"references":["IAS 2 §33"],"exercise":{"prompt":{"fr":"","en":"The fabric trader Textilor wrote down its rolls of linen and silk last year, as they had become hard to sell. This year, fashion is turning back to natural materials and the rolls, still in the warehouse, are finding buyers again. Linen: cost {linen_cost}, opening carrying amount {linen_carrying}, net realisable value at the year-end {linen_nrv}. Silk: cost {silk_cost}, opening carrying amount {silk_carrying}, net realisable value at the year-end {silk_nrv}. Determine the total reversals for the year and the total carrying amount of the two product lines at the year-end.","es":""},"explanation":{"fr":"","en":"The reversal is computed product line by product line, limited to the original write-down, the new carrying amount being the lower of cost and the revised net realisable value (IAS 2, para. 33). Linen: lower of 40,000 and 36,000, i.e. 36,000; reversal of 36,000 − 31,000 = 5,000. Silk: lower of 15,000 and 17,000, i.e. 15,000; reversal capped at 15,000 − 11,000 = 4,000. Total reversals: 9,000; total carrying amount: 36,000 + 15,000 = 51,000.","es":""},"common_error":{"fr":"","en":"Using 17,000 for the silk, i.e. a reversal of 6,000, exceeding the original write-down of 4,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"linen_cost","value":"40000","unit":"EUR"},{"id":"linen_carrying","value":"31000","unit":"EUR"},{"id":"linen_nrv","value":"36000","unit":"EUR"},{"id":"silk_cost","value":"15000","unit":"EUR"},{"id":"silk_carrying","value":"11000","unit":"EUR"},{"id":"silk_nrv","value":"17000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Cost of the linen rolls","es":""},"value":"40000","unit":"EUR"},{"label":{"fr":"","en":"Opening carrying amount of the linen","es":""},"value":"31000","unit":"EUR"},{"label":{"fr":"","en":"Net realisable value of the linen at the year-end","es":""},"value":"36000","unit":"EUR"},{"label":{"fr":"","en":"Cost of the silk rolls","es":""},"value":"15000","unit":"EUR"},{"label":{"fr":"","en":"Opening carrying amount of the silk","es":""},"value":"11000","unit":"EUR"},{"label":{"fr":"","en":"Net realisable value of the silk at the year-end","es":""},"value":"17000","unit":"EUR"}],"steps":[{"id":"TOTAL_REVERSAL","label":{"fr":"","en":"Total reversals for the year","es":""},"answer":9000,"tolerance":0,"unit":"EUR"},{"id":"TOTAL_CARRYING_AMOUNT","label":{"fr":"","en":"Total carrying amount at the year-end","es":""},"answer":51000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"TOTAL_CARRYING_AMOUNT","meaning":{"fr":"","en":"Total carrying amount at the year-end","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Net realisable value of the linen at the year-end","es":""},"value":36000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Cost of the silk rolls","es":""},"value":15000,"unit":"EUR"}],"result":51000,"unit":"EUR"}],"rationale":{"fr":"","en":"The reversal is computed product line by product line, limited to the original write-down, the new carrying amount being the lower of cost and the revised net realisable value (IAS 2, para. 33).","es":""},"references":["REF.IAS2.33"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000146","standard_id":"IAS2","concept_ids":["IAS2.NRV.REVERSAL","IAS2.EXPENSE_RECOGNITION.RULES"],"dimension":"APPLICATION","context":"V1_QST.IAS2.000146","tested_point":"QST.IAS2.000146","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000009","section_id":"reassessment-rule"},"references":["IAS 2 §33","IAS 2 §34"],"exercise":{"prompt":{"fr":"","en":"At the end of 20X1, Brivane reduced an inventory of solar panels with a cost of €90,000 to €70,000, after a collapse in selling prices. At the end of 20X2, the panels are still in inventory; a new public support scheme has clearly pushed prices back up, and net realisable value is estimated at €98,000. Management is hesitating between several treatments. Which one complies with IAS 2?","es":""},"explanation":{"fr":"","en":"There is clear evidence of an increase in net realisable value because of changed economic circumstances: the write-down is reversed, limited to its original amount (€20,000), the new carrying amount being the lower of cost (€90,000) and the revised net realisable value (€98,000) (IAS 2, para. 33). The reversal reduces the amount of inventories recognised as an expense in 20X2 (IAS 2, para. 34).","es":""},"common_error":{"fr":"","en":"Reversing more than the original write-down and carrying the inventory above cost.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Carry the panels at €98,000 and recognise a gain of €28,000 in profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"The reversal is capped at the original write-down: the panels cannot exceed their cost of €90,000.","es":""}},{"id":"B","text":{"fr":"","en":"Carry the panels at €90,000; the reversal of €20,000 reduces the inventory expense of 20X2.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Keep the panels at €70,000, since a write-down recognised in a closed period can no longer be reversed afterwards.","es":""},"correct":false,"feedback":{"fr":"","en":"Net realisable value is reassessed in each period and the write-down is reversed when that value recovers.","es":""}},{"id":"D","text":{"fr":"","en":"Carry the panels at €90,000 and recognise the reversal of €20,000 directly in other comprehensive income.","es":""},"correct":false,"feedback":{"fr":"","en":"The reversal does not go through other comprehensive income: it reduces the amount of inventories recognised as an expense.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000147","standard_id":"IAS2","concept_ids":["IAS2.NRV.REVERSAL","IAS2.EXPENSE_RECOGNITION.RULES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000147","tested_point":"QST.IAS2.000147","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000009","section_id":"reassessment-rule"},"references":["IAS 2 §34","IAS 2 §33"],"exercise":{"prompt":{"fr":"","en":"In 20X3, Pavane reverses €4,000 of a write-down recognised in 20X2 on rugs still in inventory, as their net realisable value has recovered. How is this reversal presented?","es":""},"explanation":{"fr":"","en":"The reversal of a write-down arising from an increase in net realisable value is recognised as a reduction in the amount of inventories recognised as an expense in the period in which the reversal occurs (IAS 2, para. 34). It results from the reassessment of net realisable value in each period and does not call the 20X2 write-down into question (IAS 2, para. 33).","es":""},"common_error":{"fr":"","en":"Presenting the reversal as revenue.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As revenue for 20X3, in the same way as the sales of rugs for the period.","es":""},"correct":false,"feedback":{"fr":"","en":"A reversal is not a sale: it reduces the inventory expense instead of increasing revenue.","es":""}},{"id":"B","text":{"fr":"","en":"As a reduction in the amount of inventories recognised as an expense in 20X3.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"By restating the 20X2 comparative figures, so as to cancel the original write-down retrospectively.","es":""},"correct":false,"feedback":{"fr":"","en":"The 20X2 write-down was based on the estimate made at that time; the reversal is recognised in the period in which it occurs.","es":""}},{"id":"D","text":{"fr":"","en":"Directly in equity, in reserves, with no effect on profit or loss for 20X3.","es":""},"correct":false,"feedback":{"fr":"","en":"The reversal affects profit or loss for the period of reversal, by reducing the inventory expense.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000148","standard_id":"IAS2","concept_ids":["IAS2.NRV.REVERSAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000148","tested_point":"QST.IAS2.000148","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000009","section_id":"reassessment-rule"},"references":["IAS 2 §33"],"exercise":{"prompt":{"fr":"","en":"The Mélèze sawmill wrote down an inventory of planks in 20X1 after a fall in timber prices. At the end of 20X2, the planks are still in inventory and there is clear evidence of an increase in their net realisable value because of changed economic circumstances. True or false: the write-down is reversed, limited to its original amount.","es":""},"explanation":{"fr":"","en":"True. Net realisable value is reassessed in each period; when there is clear evidence of an increase in that value because of changed economic circumstances, the write-down is reversed, limited to its original amount, so that the carrying amount is the lower of cost and the revised net realisable value (IAS 2, para. 33).","es":""},"common_error":{"fr":"","en":"Believing that the reversal is optional or that it may exceed the original write-down.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000149","standard_id":"IAS2","concept_ids":["IAS2.EXPENSE_RECOGNITION.RULES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000149","tested_point":"QST.IAS2.000149","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000010","section_id":"expense-rules"},"references":["IAS 2 §34"],"exercise":{"prompt":{"fr":"","en":"True or false: when inventories are sold, their carrying amount is recognised as an expense in the period in which the related revenue is recognised.","es":""},"explanation":{"fr":"","en":"True. When inventories are sold, their carrying amount is recognised as an expense in the period in which the related revenue is recognised (IAS 2, para. 34). The timing of revenue recognition is governed by another standard and is given data here.","es":""},"common_error":{"fr":"","en":"Recognising the expense when the goods are purchased or paid for.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000150","standard_id":"IAS2","concept_ids":["IAS2.EXPENSE_RECOGNITION.RULES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000150","tested_point":"QST.IAS2.000150","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000010","section_id":"expense-rules"},"references":["IAS 2 §34"],"exercise":{"prompt":{"fr":"","en":"During the year-end physical count, the hardware store Brassac finds that goods have disappeared following a theft. When is the corresponding loss of inventories recognised as an expense?","es":""},"explanation":{"fr":"","en":"Write-downs to net realisable value and any loss of inventories are expensed in the period when they arise (IAS 2, para. 34).","es":""},"common_error":{"fr":"","en":"Leaving missing inventories in the accounts until the next year-end.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In the period in which the loss occurs.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"When the other items of the same batch are sold, the loss remaining in inventories until then.","es":""},"correct":false,"feedback":{"fr":"","en":"Stolen goods no longer represent any benefit: the loss cannot remain in inventories.","es":""}},{"id":"C","text":{"fr":"","en":"In equal portions over the following three years, so as to smooth the effect on profit.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 2 provides for no spreading: the loss is an expense of the period in which it occurs.","es":""}},{"id":"D","text":{"fr":"","en":"As a reduction of opening equity, without going through profit or loss for the year.","es":""},"correct":false,"feedback":{"fr":"","en":"The loss goes through profit or loss for the period; it is not charged directly to equity.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000151","standard_id":"IAS2","concept_ids":["IAS2.EXPENSE_RECOGNITION.RULES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000151","tested_point":"QST.IAS2.000151","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000010","section_id":"expense-rules"},"references":["IAS 2 §35"],"exercise":{"prompt":{"fr":"","en":"Mavrel takes metal sections from its inventories to build a hangar itself, which it will use for its own needs. True or false: the carrying amount of the sections used is recognised immediately as an expense, since they will never be sold.","es":""},"explanation":{"fr":"","en":"False. Some inventories may be allocated to other asset accounts, for example when they are used as a component of self-constructed property, plant and equipment; they are then recognised as an expense during the useful life of that asset (IAS 2, para. 35). The sections therefore become part of the cost of the hangar.","es":""},"common_error":{"fr":"","en":"Expensing immediately inventories consumed to build an item of property, plant and equipment.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000152","standard_id":"IAS2","concept_ids":["IAS2.EXPENSE_RECOGNITION.RULES"],"dimension":"CALCULATION","context":"V1_QST.IAS2.000152","tested_point":"QST.IAS2.000152","difficulty":"BEGINNER","source":"V1","format":"NUMERICAL","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000010","section_id":"expense-rules"},"references":["IAS 2 §34"],"exercise":{"prompt":{"fr":"","en":"The bookshop Pagerie had opening inventories of {opening_inventory}. During the year, it bought books at a cost of {purchases}. Its closing inventories, measured at cost, amount to {closing_inventory}. All decreases in inventories are sales whose revenue is recognised in the year; there were no losses and no write-downs. Compute the amount of inventories recognised as an expense for the year.","es":""},"explanation":{"fr":"","en":"The carrying amount of inventories sold is recognised as an expense in the period in which the related revenue is recognised (IAS 2, para. 34). Decreases for the year: 40,000 + 210,000 − 50,000 = 200,000; with no losses and no write-downs, this is the amount recognised as an expense.","es":""},"common_error":{"fr":"","en":"Using purchases for the year alone as the expense.","es":""},"format":"CALCULATION","placeholders":[{"id":"opening_inventory","value":"40000","unit":"EUR"},{"id":"purchases","value":"210000","unit":"EUR"},{"id":"closing_inventory","value":"50000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Opening inventories","es":""},"value":"40000","unit":"EUR"},{"label":{"fr":"","en":"Purchases for the year (cost)","es":""},"value":"210000","unit":"EUR"},{"label":{"fr":"","en":"Closing inventories","es":""},"value":"50000","unit":"EUR"}],"steps":[{"id":"COST_OF_SALES","label":{"fr":"","en":"Amount of inventories recognised as an expense","es":""},"answer":200000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"COST_OF_SALES","meaning":{"fr":"","en":"Amount of inventories recognised as an expense","es":""},"expression":"a + b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Opening inventories","es":""},"value":40000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Purchases for the year (cost)","es":""},"value":210000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Closing inventories","es":""},"value":50000,"unit":"EUR"}],"result":200000,"unit":"EUR"}],"rationale":{"fr":"","en":"The carrying amount of inventories sold is recognised as an expense in the period in which the related revenue is recognised (IAS 2, para. 34).","es":""},"references":["REF.IAS2.34"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000153","standard_id":"IAS2","concept_ids":["IAS2.EXPENSE_RECOGNITION.RULES"],"dimension":"CALCULATION","context":"V1_VG.IAS2.000406","tested_point":"VG.IAS2.000406","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000010","section_id":"expense-rules"},"references":["IAS 2 §34"],"exercise":{"prompt":{"fr":"","en":"For 20X2, the wholesaler Distrimax reports: carrying amount of goods sold {carrying_sold}; write-downs to net realisable value recognised at the year-end {write_downs}; goods destroyed by water damage {losses}; reversal of a 20X1 write-down on items still in inventory whose selling price has recovered {reversals}. Compute the total amount of inventories recognised as an expense in 20X2.","es":""},"explanation":{"fr":"","en":"The carrying amount of inventories sold, write-downs and losses of inventories are expenses of the period; the reversal of a write-down is recognised as a reduction in the amount of inventories recognised as an expense in the period of reversal (IAS 2, para. 34). Total: 340,000 + 12,000 + 3,000 − 5,000 = 350,000.","es":""},"common_error":{"fr":"","en":"Adding the reversal instead of deducting it, which gives 360,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"carrying_sold","value":"340000","unit":"EUR"},{"id":"write_downs","value":"12000","unit":"EUR"},{"id":"losses","value":"3000","unit":"EUR"},{"id":"reversals","value":"5000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Carrying amount of goods sold","es":""},"value":"340000","unit":"EUR"},{"label":{"fr":"","en":"Write-downs for the period","es":""},"value":"12000","unit":"EUR"},{"label":{"fr":"","en":"Losses of inventories (water damage)","es":""},"value":"3000","unit":"EUR"},{"label":{"fr":"","en":"Reversal of a write-down","es":""},"value":"5000","unit":"EUR"}],"steps":[{"id":"INVENTORY_EXPENSE","label":{"fr":"","en":"Amount of inventories recognised as an expense","es":""},"answer":350000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"INVENTORY_EXPENSE","meaning":{"fr":"","en":"Amount of inventories recognised as an expense","es":""},"expression":"a + b + c - d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of goods sold","es":""},"value":340000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Write-downs for the period","es":""},"value":12000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Losses of inventories (water damage)","es":""},"value":3000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Reversal of a write-down","es":""},"value":5000,"unit":"EUR"}],"result":350000,"unit":"EUR"}],"references":["REF.IAS2.34"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000154","standard_id":"IAS2","concept_ids":["IAS2.EXPENSE_RECOGNITION.RULES"],"dimension":"CALCULATION","context":"V1_VG.IAS2.000406","tested_point":"VG.IAS2.000406","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000010","section_id":"expense-rules"},"references":["IAS 2 §34"],"exercise":{"prompt":{"fr":"","en":"The household appliance retailer Électroprime recognised revenue of {revenue} in 20X1 (given, determined under IFRS 15). The appliances sold had a carrying amount of {carrying_sold}. At the year-end, models that had become obsolete were written down by {write_downs}, and breakage found in the warehouse represents {losses}. Finally, a batch of air conditioners written down last year and still in inventory saw its net realisable value recover, hence a reversal of {reversals}. What amount of inventories is recognised as an expense in 20X1?","es":""},"explanation":{"fr":"","en":"Revenue does not enter the computation: only the carrying amount of inventories sold counts, increased by the write-downs and losses of the period and reduced by reversals (IAS 2, para. 34). Amount: 515,000 + 21,000 + 4,000 − 9,000 = 531,000.","es":""},"common_error":{"fr":"","en":"Starting from revenue instead of the carrying amount of the appliances sold.","es":""},"format":"CALCULATION","placeholders":[{"id":"revenue","value":"720000","unit":"EUR"},{"id":"carrying_sold","value":"515000","unit":"EUR"},{"id":"write_downs","value":"21000","unit":"EUR"},{"id":"losses","value":"4000","unit":"EUR"},{"id":"reversals","value":"9000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Revenue (given)","es":""},"value":"720000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of appliances sold","es":""},"value":"515000","unit":"EUR"},{"label":{"fr":"","en":"Write-down of obsolete models","es":""},"value":"21000","unit":"EUR"},{"label":{"fr":"","en":"Breakage in the warehouse","es":""},"value":"4000","unit":"EUR"},{"label":{"fr":"","en":"Reversal on the air conditioners","es":""},"value":"9000","unit":"EUR"}],"steps":[{"id":"INVENTORY_EXPENSE","label":{"fr":"","en":"Amount of inventories recognised as an expense in 20X1","es":""},"answer":531000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"INVENTORY_EXPENSE","meaning":{"fr":"","en":"Amount of inventories recognised as an expense in 20X1","es":""},"expression":"a + b + c - d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of appliances sold","es":""},"value":515000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Write-down of obsolete models","es":""},"value":21000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Breakage in the warehouse","es":""},"value":4000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Reversal on the air conditioners","es":""},"value":9000,"unit":"EUR"}],"result":531000,"unit":"EUR"}],"rationale":{"fr":"","en":"Revenue does not enter the computation: only the carrying amount of inventories sold counts, increased by the write-downs and losses of the period and reduced by reversals (IAS 2, para. 34).","es":""},"references":["REF.IAS2.34"]}},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS2.000159","standard_id":"IAS2","concept_ids":["IAS2.EXPENSE_RECOGNITION.RULES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000159","tested_point":"QST.IAS2.000159","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000010","section_id":"expense-rules"},"references":["IAS 2 §34","IAS 2 §35"],"exercise":{"prompt":{"fr":"","en":"To train the new accountants of Quarzine, the finance director writes statements on the recognition of inventories as an expense. Select those that are correct.","es":""},"explanation":{"fr":"","en":"The carrying amount of inventories sold is an expense of the period of the related revenue; write-downs and losses are expenses of the period in which they occur; reversals reduce the expense of the period of reversal (IAS 2, para. 34). Inventories incorporated into an asset built by the entity are recognised as an expense during the useful life of that asset (IAS 2, para. 35).","es":""},"common_error":{"fr":"","en":"Expensing immediately inventories consumed to build an item of property, plant and equipment.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Losses of inventories found during the physical count are deferred until the remaining items of the same batch are sold.","es":""},"correct":false,"feedback":{"fr":"","en":"Losses of inventories are expenses of the period in which they occur; they are not deferred.","es":""}},{"id":"B","text":{"fr":"","en":"The carrying amount of inventories sold is recognised as an expense in the period in which the related revenue is recognised.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A write-down to net realisable value is an expense of the period in which it occurs.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Inventories used to build an item of property, plant and equipment of the entity are recognised as an expense as soon as they are used.","es":""},"correct":false,"feedback":{"fr":"","en":"Those inventories are allocated to the asset and recognised as an expense during its useful life.","es":""}},{"id":"E","text":{"fr":"","en":"A reversal of a write-down reduces the amount of inventories recognised as an expense in the period of reversal.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000160","standard_id":"IAS2","concept_ids":["IAS2.EXPENSE_RECOGNITION.RULES"],"dimension":"APPLICATION","context":"V1_QST.IAS2.000160","tested_point":"QST.IAS2.000160","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000010","section_id":"expense-rules"},"references":["IAS 2 §35","IAS 2 §34"],"exercise":{"prompt":{"fr":"","en":"In 20X1, the building materials merchant Bâtir Solenne sells to its customers bricks with a carrying amount of €60,000, the related revenue being recognised in 20X1 (given). It also uses bricks from its inventory, with a carrying amount of €45,000, to build its new head office, which it will occupy itself and account for as property, plant and equipment. Which treatment should be applied for 20X1?","es":""},"explanation":{"fr":"","en":"The bricks sold are recognised as an expense at their carrying amount in the period in which the related revenue is recognised, i.e. €60,000 in 20X1 (IAS 2, para. 34). The bricks used as a component of the head office built by the entity for itself are allocated to property, plant and equipment and recognised as an expense during the useful life of that asset (IAS 2, para. 35).","es":""},"common_error":{"fr":"","en":"Expensing immediately inventories consumed to build an item of property, plant and equipment.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"An expense of €105,000 in 20X1: €60,000 of cost of sales and €45,000 for the bricks used on the building site.","es":""},"correct":false,"feedback":{"fr":"","en":"The site bricks are not an immediate expense: they are incorporated into an asset built by the entity.","es":""}},{"id":"B","text":{"fr":"","en":"Cost of sales of €60,000 in 20X1; the site bricks, €45,000, join the cost of the head office and will be recognised as an expense during its useful life.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Cost of sales of €60,000 in 20X1; the site bricks stay in inventories until the head office is brought into use, then are recognised as an expense in one go at that date.","es":""},"correct":false,"feedback":{"fr":"","en":"The bricks built into the head office leave inventories: they are allocated to the asset and recognised as an expense over its useful life, not in one go.","es":""}},{"id":"D","text":{"fr":"","en":"No expense in 20X1 as long as customers have not paid their invoices, then €105,000 of expenses as cash is collected.","es":""},"correct":false,"feedback":{"fr":"","en":"The expense is linked to the period in which revenue is recognised, not to cash collection; and the site bricks are not an expense of the period.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000161","standard_id":"IAS2","concept_ids":["IAS2.DISCLOSURE.REQUIREMENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000161","tested_point":"QST.IAS2.000161","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000010","section_id":"cost-of-sales-content"},"references":["IAS 2 §36"],"exercise":{"prompt":{"fr":"","en":"Granova has pledged part of its inventories as security for a bank loan. True or false: its financial statements disclose the carrying amount of inventories pledged as security for liabilities.","es":""},"explanation":{"fr":"","en":"True. The disclosures on inventories include the carrying amount of inventories pledged as security for liabilities (IAS 2, para. 36).","es":""},"common_error":{"fr":"","en":"Considering that presenting the loan among liabilities is enough.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000162","standard_id":"IAS2","concept_ids":["IAS2.DISCLOSURE.REQUIREMENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000162","tested_point":"QST.IAS2.000162","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000010","section_id":"cost-of-sales-content"},"references":["IAS 2 §36"],"exercise":{"prompt":{"fr":"","en":"In 20X2, Pelvane reversed a write-down of inventories recognised in 20X1. In addition to the amount of the reversal, which information does IAS 2 require on this matter?","es":""},"explanation":{"fr":"","en":"The financial statements disclose the amount of any reversal of write-downs recognised as a reduction in the inventory expense and the circumstances or events that led to those reversals (IAS 2, para. 36).","es":""},"common_error":{"fr":"","en":"Omitting the circumstances that led to a reversal of a write-down.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The fair value of all inventories at the year-end, compared with their carrying amount.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 2 does not require the fair value of all inventories; only the carrying amount of inventories carried at fair value less costs to sell is required.","es":""}},{"id":"B","text":{"fr":"","en":"The circumstances or events that led to the reversal.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The list of customers to whom the items concerned were sold after the reversal.","es":""},"correct":false,"feedback":{"fr":"","en":"This commercial information is not among the disclosures required by IAS 2.","es":""}},{"id":"D","text":{"fr":"","en":"The forecast selling price of the items concerned for the following year, prepared by management.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 2 does not require price forecasts; it requires the cause of the reversal.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000163","standard_id":"IAS2","concept_ids":["IAS2.DISCLOSURE.REQUIREMENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000163","tested_point":"QST.IAS2.000163","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000010","section_id":"cost-of-sales-content"},"references":["IAS 2 §36"],"exercise":{"prompt":{"fr":"","en":"The consolidation team of the Ostrane group is drawing up the checklist of disclosures on inventories required by IAS 2. Select the items that must appear in it.","es":""},"explanation":{"fr":"","en":"IAS 2 requires in particular the accounting policies adopted in measuring inventories, including the cost formula used, the total carrying amount and its breakdown into classifications appropriate to the entity, and the amount of inventories recognised as an expense during the period (IAS 2, para. 36). Replacement cost and item-by-item selling prices are not among these disclosures.","es":""},"common_error":{"fr":"","en":"Adding detailed management information that the standard does not require.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The accounting policies adopted in measuring inventories, including the cost formula used.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The replacement cost of each category of inventories at the year-end.","es":""},"correct":false,"feedback":{"fr":"","en":"Replacement cost of inventories is not among the disclosures required by IAS 2.","es":""}},{"id":"C","text":{"fr":"","en":"The total carrying amount of inventories and the carrying amount in classifications appropriate to the entity.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The amount of inventories recognised as an expense during the period.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The estimated selling price of each item written down.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 2 does not require detailed estimated selling prices; it requires the amount of write-downs recognised.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000164","standard_id":"IAS2","concept_ids":["IAS2.DISCLOSURE.REQUIREMENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000164","tested_point":"QST.IAS2.000164","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000010","section_id":"cost-of-sales-content"},"references":["IAS 2 §36","IAS 2 §37"],"exercise":{"prompt":{"fr":"","en":"The packaging manufacturer Plastiform is preparing its note on inventories. Which breakdown of the carrying amount of inventories meets IAS 2?","es":""},"explanation":{"fr":"","en":"The total carrying amount of inventories is broken down into classifications appropriate to the entity (IAS 2, para. 36). This information is useful to users; common classifications are merchandise, production supplies, materials, work in progress and finished goods (IAS 2, para. 37). For a manufacturer, a breakdown into materials, supplies, work in progress and finished goods is therefore appropriate.","es":""},"common_error":{"fr":"","en":"Disclosing only total inventories.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No breakdown: only total inventories are disclosed, the breakdown being merely an optional suggestion.","es":""},"correct":false,"feedback":{"fr":"","en":"The breakdown into classifications appropriate to the entity is a required disclosure, not a suggestion.","es":""}},{"id":"B","text":{"fr":"","en":"A breakdown into classifications appropriate to the entity, for example materials, production supplies, work in progress and finished goods.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A breakdown according to a single list of classifications imposed by the standard, identical for all entities whatever their sector.","es":""},"correct":false,"feedback":{"fr":"","en":"Classifications are appropriate to the entity; the list mentioned by IAS 2 is indicative, not a single nomenclature.","es":""}},{"id":"D","text":{"fr":"","en":"A breakdown by main supplier, so as to show the entity's dependence on its suppliers.","es":""},"correct":false,"feedback":{"fr":"","en":"The breakdown relates to the nature of inventories, not to the identity of suppliers.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000165","standard_id":"IAS2","concept_ids":["IAS2.DISCLOSURE.REQUIREMENTS"],"dimension":"APPLICATION","context":"V1_QST.IAS2.000165","tested_point":"QST.IAS2.000165","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000010","section_id":"cost-of-sales-content"},"references":["IAS 2 §38","IAS 2 §36"],"exercise":{"prompt":{"fr":"","en":"Métallerie Corvex is preparing its note on inventories for 20X2. Data: carrying amount of goods sold €820,000; fixed production overheads not allocated to inventories, as production was below normal capacity (case data), €35,000; abnormal amount of production costs due to exceptional wastage of materials €12,000; distribution costs €40,000, which Corvex's documented accounting policy does not include in this amount. What amount of inventories recognised as an expense during the period must Corvex disclose?","es":""},"explanation":{"fr":"","en":"The inventory expense, commonly labelled cost of sales, covers the cost of the inventories sold plus production overheads that were not allocated to inventories and abnormal production costs; depending on its circumstances, an entity may also include other items such as distribution costs (IAS 2, para. 38). As Corvex has chosen not to include them, the amount to disclose (IAS 2, para. 36) is: 820,000 + 35,000 + 12,000 = €867,000. Where applicable, write-downs and losses of inventories, less reversals, are added to this amount; none is reported here.","es":""},"common_error":{"fr":"","en":"Limiting the amount recognised as an expense to the carrying amount of goods sold alone.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"€820,000","es":""},"correct":false,"feedback":{"fr":"","en":"This amount omits the unallocated production overheads and the abnormal amount of production costs.","es":""}},{"id":"B","text":{"fr":"","en":"€907,000","es":""},"correct":false,"feedback":{"fr":"","en":"This amount includes distribution costs, although Corvex's accounting policy excludes them.","es":""}},{"id":"C","text":{"fr":"","en":"€867,000","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"€855,000","es":""},"correct":false,"feedback":{"fr":"","en":"This amount omits the abnormal amount of production costs arising from the wastage of materials.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000166","standard_id":"IAS2","concept_ids":["IAS2.DISCLOSURE.REQUIREMENTS"],"dimension":"APPLICATION","context":"V1_QST.IAS2.000166","tested_point":"QST.IAS2.000166","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000010","section_id":"cost-of-sales-content"},"references":["IAS 2 §36"],"exercise":{"prompt":{"fr":"","en":"Velorance is closing its 20X2 financial year. Data: inventories measured using the first-in, first-out (FIFO) formula; total carrying amount €640,000 (materials €210,000, work in progress €130,000, finished goods €300,000); amount of inventories recognised as an expense €2,900,000; write-downs for the year €25,000; reversal of €8,000 following the end of a temporary price war; inventories of €150,000 pledged as security for a bank loan; no inventories are carried at fair value less costs to sell. Four draft notes are proposed. Which one meets the requirements of IAS 2?","es":""},"explanation":{"fr":"","en":"Velorance must disclose its accounting policies, including the cost formula, the total carrying amount and its breakdown by classification, the amount of inventories recognised as an expense, the amount of write-downs, the amount of reversals and the circumstances or events that led to them, and the carrying amount of inventories pledged as security for liabilities (IAS 2, para. 36). As no inventories are carried at fair value less costs to sell, that disclosure does not apply. Only draft 3 is complete.","es":""},"common_error":{"fr":"","en":"Omitting the circumstances that led to a reversal of a write-down.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Draft 1, which presents all the required amounts but does not describe the event that led to the reversal.","es":""},"correct":false,"feedback":{"fr":"","en":"The circumstances or events that led to the reversal (here the end of the price war) must be disclosed.","es":""}},{"id":"B","text":{"fr":"","en":"Draft 2, which describes the policy, the breakdown, the expense, the write-down, the reversal and its cause, but omits the pledged inventories.","es":""},"correct":false,"feedback":{"fr":"","en":"The carrying amount of inventories pledged as security for liabilities is a required disclosure.","es":""}},{"id":"C","text":{"fr":"","en":"Draft 3, which presents the FIFO policy, the breakdown by classification, the expense for the year, the write-down, the reversal and its cause, and the pledged inventories.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Draft 4, identical to draft 3, except that it replaces the description of the cost formula with a mere statement of the replacement cost of inventories at the year-end, deemed more meaningful to readers.","es":""},"correct":false,"feedback":{"fr":"","en":"The cost formula used must be disclosed; replacement cost does not replace it.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000167","standard_id":"IAS2","concept_ids":["IAS2.DISCLOSURE.REQUIREMENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000167","tested_point":"QST.IAS2.000167","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000010","section_id":"cost-of-sales-content"},"references":["IAS 2 §36"],"exercise":{"prompt":{"fr":"","en":"The commodity broker-trader Granexa measures part of its grain inventories at fair value less costs to sell (case data). The rest of its inventories is measured at the lower of cost and net realisable value. True or false: its financial statements disclose the carrying amount of inventories carried at fair value less costs to sell.","es":""},"explanation":{"fr":"","en":"True. The disclosures include the carrying amount of inventories carried at fair value less costs to sell, alongside the total carrying amount and its breakdown by classification (IAS 2, para. 36).","es":""},"common_error":{"fr":"","en":"Presenting only total inventories without isolating those carried at fair value less costs to sell.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS2.000168","standard_id":"IAS2","concept_ids":["IAS2.DISCLOSURE.REQUIREMENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS2.000168","tested_point":"QST.IAS2.000168","difficulty":"EXPERT","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS2","lesson_id":"LS.IAS2.000010","section_id":"cost-of-sales-content"},"references":["IAS 2 §36"],"exercise":{"prompt":{"fr":"","en":"You are reviewing Fabrimo's note on inventories for 20X2. Data: materials are measured using the first-in, first-out (FIFO) formula and finished goods using weighted average cost (case data); write-downs of €14,000 were recognised; a reversal of €6,000 was recorded following the recovery of the copper price; inventories of €200,000 secure a bank loan. Select the correct statements on the content of the note.","es":""},"explanation":{"fr":"","en":"IAS 2 separately requires the amount of write-downs recognised as an expense, the amount of reversals and the circumstances or events that led to them, the accounting policies including the cost formula used, and the carrying amount of inventories pledged as security for liabilities (IAS 2, para. 36). A net amount of €8,000 is therefore not enough, and presenting the loan among liabilities does not remove the need to disclose the pledged inventories.","es":""},"common_error":{"fr":"","en":"Omitting the circumstances that led to a reversal of a write-down.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The note may be limited to the net amount of €8,000 between the write-downs and the reversal.","es":""},"correct":false,"feedback":{"fr":"","en":"Write-downs and reversals are two separate disclosures: the net amount is not enough.","es":""}},{"id":"B","text":{"fr":"","en":"The note discloses the amount of the reversal of €6,000 and the recovery of the copper price that caused it.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The note discloses the carrying amount of €200,000 of inventories pledged as security.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Pledged inventories need not be mentioned since the bank loan is presented among liabilities.","es":""},"correct":false,"feedback":{"fr":"","en":"The carrying amount of pledged inventories is a disclosure specific to IAS 2, independent of how the loan is presented.","es":""}},{"id":"E","text":{"fr":"","en":"The accounting policies describe both cost formulas used, FIFO for materials and weighted average cost for finished goods.","es":""},"correct":true}]},"scope":"CORE_STUDENT"}],"reviewTitles":{"LX.IAS16.000133":"Depreciating by component and recognising the charge — Entries: charge included in inventories and in an asset under construction","LX.IAS16.000134":"Depreciating by component and recognising the charge — Entries: charge included in inventories and in an asset under construction","LX.IAS16.000135":"Depreciating by component and recognising the charge — Where does the charge go? Profit or loss or the cost of another asset","LX.IAS16.000136":"Depreciating by component and recognising the charge — Entries: charge included in inventories and in an asset under construction","LX.IAS2.000001":"Objective and scope of IAS 2 — How to tell whether IAS 2 applies: three questions","LX.IAS2.000002":"Objective and scope of IAS 2 — Harvested agricultural produce: the hand-over from IAS 41 to IAS 2","LX.IAS2.000003":"Objective and scope of IAS 2 — The objective of IAS 2","LX.IAS2.000004":"Objective and scope of IAS 2 — Numerical example: a cooperative and a trader","LX.IAS2.000005":"Objective and scope of IAS 2 — Scope: all inventories, except two families","LX.IAS2.000006":"Objective and scope of IAS 2 — Common mistakes","LX.IAS2.000007":"Objective and scope of IAS 2 — Excluded from the measurement requirements only","LX.IAS2.000008":"Objective and scope of IAS 2 — Areas of judgment: industry practice and broker-trading activity","LX.IAS2.000009":"What is inventory? Net realisable value and the measurement principle — The definition of inventories and its categories","LX.IAS2.000010":"What is inventory? Net realisable value and the measurement principle — The definition of inventories and its categories","LX.IAS2.000011":"What is inventory? Net realisable value and the measurement principle — Numerical example: a wine merchant and a four-item table","LX.IAS2.000012":"What is inventory? Net realisable value and the measurement principle — Net realisable value and fair value: two different notions","LX.IAS2.000013":"What is inventory? Net realisable value and the measurement principle — Net realisable value and fair value: two different notions","LX.IAS2.000014":"What is inventory? Net realisable value and the measurement principle — The definition of inventories and its categories","LX.IAS2.000015":"What is inventory? Net realisable value and the measurement principle — Common mistakes","LX.IAS2.000016":"What is inventory? Net realisable value and the measurement principle — Net realisable value and fair value: two different notions","LX.IAS2.000017":"What is inventory? Net realisable value and the measurement principle — How to measure inventory: three steps","LX.IAS2.000018":"Costs of purchase — What costs of purchase contain","LX.IAS2.000019":"Costs of purchase — Numerical example: Fonderie Brévane's aluminium","LX.IAS2.000020":"Costs of purchase — From invoice to unit cost: five steps","LX.IAS2.000021":"Costs of purchase — The entry recording the purchase","LX.IAS2.000022":"Costs of purchase — The entry recording the purchase","LX.IAS2.000023":"Costs of purchase — What costs of purchase contain","LX.IAS2.000024":"Costs of purchase — Common mistakes","LX.IAS2.000025":"Costs of purchase — Area of judgment: what is 'directly attributable'?","LX.IAS2.000026":"Costs of purchase — Taxes and price reductions: the two sources of error","LX.IAS2.000027":"Costs of conversion: normal capacity, low production and joint products — The rule: direct costs and a systematic allocation of overheads","LX.IAS2.000028":"Costs of conversion: normal capacity, low production and joint products — Low production, abnormally high production and variable overheads","LX.IAS2.000029":"Costs of conversion: normal capacity, low production and joint products — Low production, abnormally high production and variable overheads","LX.IAS2.000030":"Costs of conversion: normal capacity, low production and joint products — Low production, abnormally high production and variable overheads","LX.IAS2.000031":"Costs of conversion: normal capacity, low production and joint products — Worked example: the Fonderie Brévane standard frying pan","LX.IAS2.000032":"Costs of conversion: normal capacity, low production and joint products — Joint products and by-products","LX.IAS2.000033":"Costs of conversion: normal capacity, low production and joint products — Joint products and by-products","LX.IAS2.000034":"Costs of conversion: normal capacity, low production and joint products — The Fonderie Brévane entries","LX.IAS2.000035":"Costs of conversion: normal capacity, low production and joint products — Joint products and by-products","LX.IAS2.000036":"Costs of conversion: normal capacity, low production and joint products — Low production, abnormally high production and variable overheads","LX.IAS2.000037":"Costs of conversion: normal capacity, low production and joint products — Points of attention and common errors","LX.IAS2.000038":"Costs of conversion: normal capacity, low production and joint products — Professional judgment: setting normal capacity and choosing the allocation basis","LX.IAS2.000039":"Costs of conversion: normal capacity, low production and joint products — Professional judgment: setting normal capacity and choosing the allocation basis","LX.IAS2.000040":"Costs of conversion: normal capacity, low production and joint products — Joint products and by-products","LX.IAS2.000041":"Other costs, excluded costs, borrowing costs and deferred settlement — The excluded costs listed by the standard","LX.IAS2.000042":"Other costs, excluded costs, borrowing costs and deferred settlement — The excluded costs listed by the standard","LX.IAS2.000043":"Other costs, excluded costs, borrowing costs and deferred settlement — Worked example: Fonderie Brévane's other costs","LX.IAS2.000044":"Other costs, excluded costs, borrowing costs and deferred settlement — Deferred settlement: separating price and financing","LX.IAS2.000045":"Other costs, excluded costs, borrowing costs and deferred settlement — The deferred settlement entries","LX.IAS2.000046":"Other costs, excluded costs, borrowing costs and deferred settlement — Points of attention and common errors","LX.IAS2.000047":"Other costs, excluded costs, borrowing costs and deferred settlement — Deferred settlement: separating price and financing","LX.IAS2.000048":"Other costs, excluded costs, borrowing costs and deferred settlement — Professional judgment: necessary storage and overheads","LX.IAS2.000049":"Other costs, excluded costs, borrowing costs and deferred settlement — Other costs that may be included","LX.IAS2.000050":"Other costs, excluded costs, borrowing costs and deferred settlement — Borrowing costs: a referral to IAS 23","LX.IAS2.000051":"Techniques for measuring cost: standard cost and the retail method — The retail method","LX.IAS2.000052":"Techniques for measuring cost: standard cost and the retail method — Standard cost: normal levels and regular review","LX.IAS2.000053":"Techniques for measuring cost: standard cost and the retail method — The retail method","LX.IAS2.000054":"Techniques for measuring cost: standard cost and the retail method — Points of attention and common errors","LX.IAS2.000055":"Techniques for measuring cost: standard cost and the retail method — Standard cost: normal levels and regular review","LX.IAS2.000056":"Techniques for measuring cost: standard cost and the retail method — The retail method","LX.IAS2.000057":"Techniques for measuring cost: standard cost and the retail method — Professional judgment: when to revise, how to group","LX.IAS2.000058":"Techniques for measuring cost: standard cost and the retail method — The rule: permitted if the result approximates cost","LX.IAS2.000059":"Cost formulas: specific identification, FIFO and weighted average cost — Other inventories: FIFO or weighted average cost","LX.IAS2.000060":"Cost formulas: specific identification, FIFO and weighted average cost — Specific identification: for items that cannot replace one another","LX.IAS2.000061":"Cost formulas: specific identification, FIFO and weighted average cost — Specific identification: for items that cannot replace one another","LX.IAS2.000062":"Cost formulas: specific identification, FIFO and weighted average cost — Worked example: Fonderie Brévane's glass lids","LX.IAS2.000063":"Cost formulas: specific identification, FIFO and weighted average cost — Worked example: Fonderie Brévane's glass lids","LX.IAS2.000064":"Cost formulas: specific identification, FIFO and weighted average cost — Worked example: Fonderie Brévane's glass lids","LX.IAS2.000065":"Cost formulas: specific identification, FIFO and weighted average cost — Worked example: Fonderie Brévane's glass lids","LX.IAS2.000066":"Cost formulas: specific identification, FIFO and weighted average cost — Why frame the choice in this way?","LX.IAS2.000067":"Cost formulas: specific identification, FIFO and weighted average cost — Recording cost of sales","LX.IAS2.000068":"Cost formulas: specific identification, FIFO and weighted average cost — Specific identification: for items that cannot replace one another","LX.IAS2.000069":"Cost formulas: specific identification, FIFO and weighted average cost — Other inventories: FIFO or weighted average cost","LX.IAS2.000070":"Cost formulas: specific identification, FIFO and weighted average cost — Specific identification: for items that cannot replace one another","LX.IAS2.000071":"Cost formulas: specific identification, FIFO and weighted average cost — One formula for inventories of a similar nature and use","LX.IAS2.000072":"Cost formulas: specific identification, FIFO and weighted average cost — The method: keeping a stock card","LX.IAS2.000073":"Writing down to net realisable value: item by item, firm contracts and materials — Situations in which cost may not be recoverable","LX.IAS2.000074":"Writing down to net realisable value: item by item, firm contracts and materials — Item by item, never by category","LX.IAS2.000075":"Writing down to net realisable value: item by item, firm contracts and materials — Calculating net realisable value","LX.IAS2.000076":"Writing down to net realisable value: item by item, firm contracts and materials — Calculating net realisable value","LX.IAS2.000077":"Writing down to net realisable value: item by item, firm contracts and materials — Item by item, never by category","LX.IAS2.000078":"Writing down to net realisable value: item by item, firm contracts and materials — Inventory covered by a firm sales contract","LX.IAS2.000079":"Writing down to net realisable value: item by item, firm contracts and materials — Materials and supplies held for production","LX.IAS2.000080":"Writing down to net realisable value: item by item, firm contracts and materials — Recording the write-down","LX.IAS2.000081":"Writing down to net realisable value: item by item, firm contracts and materials — Recording the write-down","LX.IAS2.000082":"Writing down to net realisable value: item by item, firm contracts and materials — Item by item, never by category","LX.IAS2.000083":"Writing down to net realisable value: item by item, firm contracts and materials — Item by item, never by category","LX.IAS2.000084":"Writing down to net realisable value: item by item, firm contracts and materials — Estimates and events after the reporting period","LX.IAS2.000085":"Writing down to net realisable value: item by item, firm contracts and materials — Materials and supplies held for production","LX.IAS2.000086":"Writing down to net realisable value: item by item, firm contracts and materials — The method in five steps","LX.IAS2.000087":"Reassessing net realisable value and reversing a write-down — The cap: never above cost","LX.IAS2.000088":"Reassessing net realisable value and reversing a write-down — The cap: never above cost","LX.IAS2.000089":"Reassessing net realisable value and reversing a write-down — Numeric example: casserole P2 at Fonderie Brévane in N+1","LX.IAS2.000090":"Reassessing net realisable value and reversing a write-down — The entries for N+1","LX.IAS2.000091":"Reassessing net realisable value and reversing a write-down — The entries for N+1","LX.IAS2.000092":"Reassessing net realisable value and reversing a write-down — Points to watch","LX.IAS2.000093":"Reassessing net realisable value and reversing a write-down — How to apply it? Four steps","LX.IAS2.000094":"Reassessing net realisable value and reversing a write-down — The rule: reassess every period","LX.IAS2.000095":"Reassessing net realisable value and reversing a write-down — A write-down that is not final","LX.IAS2.000096":"Recognising inventories as an expense and disclosures — What does 'cost of sales' contain?","LX.IAS2.000097":"Recognising inventories as an expense and disclosures — The rule: sale, write-downs and losses, reversals","LX.IAS2.000098":"Recognising inventories as an expense and disclosures — How to do it? From inventory flows to the note","LX.IAS2.000099":"Recognising inventories as an expense and disclosures — The entries for N","LX.IAS2.000100":"Recognising inventories as an expense and disclosures — Inventories allocated to another asset","LX.IAS2.000101":"Recognising inventories as an expense and disclosures — The disclosures","LX.IAS2.000102":"Recognising inventories as an expense and disclosures — What does 'cost of sales' contain?","LX.IAS2.000103":"Recognising inventories as an expense and disclosures — The disclosures","LX.IAS2.000104":"Recognising inventories as an expense and disclosures — Points to watch","LX.IAS2.000105":"Recognising inventories as an expense and disclosures — Numeric example: year N at Fonderie Brévane","LX.IAS2.000106":"Recognising inventories as an expense and disclosures — The disclosures","LX.IAS2.000107":"Costs of conversion: normal capacity, low production and joint products — Low production, abnormally high production and variable overheads","LX.IAS2.000108":"Writing down to net realisable value: item by item, firm contracts and materials — The method in five steps","LX.IAS2.000109":"Recognising inventories as an expense and disclosures — The disclosures","LX.IAS2.000110":"Recognising inventories as an expense and disclosures — The disclosures","LX.IAS2.000111":"Reassessing net realisable value and reversing a write-down — How to apply it? Four steps","LX.IAS2.000112":"Other costs, excluded costs, borrowing costs and deferred settlement — How to classify a cost: the four-question grid","LX.IAS2.000113":"Techniques for measuring cost: standard cost and the retail method — Professional judgment: when to revise, how to group","LX.IAS2.000114":"Writing down to net realisable value: item by item, firm contracts and materials — Judgment: events, groupings and partial contracts","QST.IAS2.000001":"Objective and scope of IAS 2 — The objective of IAS 2","QST.IAS2.000002":"Objective and scope of IAS 2 — The objective of IAS 2","QST.IAS2.000003":"Objective and scope of IAS 2 — The objective of IAS 2","QST.IAS2.000004":"Objective and scope of IAS 2 — The objective of IAS 2","QST.IAS2.000005":"Objective and scope of IAS 2 — The objective of IAS 2","QST.IAS2.000006":"Objective and scope of IAS 2 — The objective of IAS 2","QST.IAS2.000007":"Objective and scope of IAS 2 — The objective of IAS 2","QST.IAS2.000008":"Objective and scope of IAS 2 — The objective of IAS 2","QST.IAS2.000009":"Objective and scope of IAS 2 — Scope: all inventories, except two families","QST.IAS2.000010":"Objective and scope of IAS 2 — Scope: all inventories, except two families","QST.IAS2.000011":"Objective and scope of IAS 2 — Scope: all inventories, except two families","QST.IAS2.000012":"Objective and scope of IAS 2 — Scope: all inventories, except two families","QST.IAS2.000013":"Objective and scope of IAS 2 — Scope: all inventories, except two families","QST.IAS2.000014":"Objective and scope of IAS 2 — Scope: all inventories, except two families","QST.IAS2.000015":"Objective and scope of IAS 2 — Scope: all inventories, except two families","QST.IAS2.000016":"Objective and scope of IAS 2 — Scope: all inventories, except two families","QST.IAS2.000017":"Objective and scope of IAS 2 — Scope: all inventories, except two families","QST.IAS2.000018":"Objective and scope of IAS 2 — Scope: all inventories, except two families","QST.IAS2.000019":"Objective and scope of IAS 2 — Scope: all inventories, except two families","QST.IAS2.000020":"Objective and scope of IAS 2 — Scope: all inventories, except two families","QST.IAS2.000021":"What is inventory? Net realisable value and the measurement principle — The definition of inventories and its categories","QST.IAS2.000022":"What is inventory? Net realisable value and the measurement principle — The definition of inventories and its categories","QST.IAS2.000023":"What is inventory? Net realisable value and the measurement principle — The definition of inventories and its categories","QST.IAS2.000024":"What is inventory? Net realisable value and the measurement principle — The definition of inventories and its categories","QST.IAS2.000025":"What is inventory? Net realisable value and the measurement principle — The definition of inventories and its categories","QST.IAS2.000026":"What is inventory? Net realisable value and the measurement principle — The definition of inventories and its categories","QST.IAS2.000027":"What is inventory? Net realisable value and the measurement principle — The definition of inventories and its categories","QST.IAS2.000028":"What is inventory? Net realisable value and the measurement principle — The definition of inventories and its categories","QST.IAS2.000029":"What is inventory? Net realisable value and the measurement principle — The definition of inventories and its categories","QST.IAS2.000030":"What is inventory? Net realisable value and the measurement principle — The definition of inventories and its categories","QST.IAS2.000031":"What is inventory? Net realisable value and the measurement principle — The definition of inventories and its categories","QST.IAS2.000032":"What is inventory? Net realisable value and the measurement principle — The definition of inventories and its categories","QST.IAS2.000033":"What is inventory? Net realisable value and the measurement principle — The definition of inventories and its categories","QST.IAS2.000034":"What is inventory? Net realisable value and the measurement principle — The principle: the lower of cost and net realisable value","QST.IAS2.000035":"What is inventory? Net realisable value and the measurement principle — The principle: the lower of cost and net realisable value","QST.IAS2.000036":"What is inventory? Net realisable value and the measurement principle — The principle: the lower of cost and net realisable value","QST.IAS2.000037":"What is inventory? Net realisable value and the measurement principle — The definition of inventories and its categories","QST.IAS2.000038":"Objective and scope of IAS 2 — Scope: all inventories, except two families","QST.IAS2.000039":"What is inventory? Net realisable value and the measurement principle — The definition of inventories and its categories","QST.IAS2.000040":"What is inventory? Net realisable value and the measurement principle — The definition of inventories and its categories","QST.IAS2.000041":"What is inventory? Net realisable value and the measurement principle — The definition of inventories and its categories","QST.IAS2.000042":"What is inventory? Net realisable value and the measurement principle — The definition of inventories and its categories","QST.IAS2.000043":"What is inventory? Net realisable value and the measurement principle — The definition of inventories and its categories","QST.IAS2.000044":"What is inventory? Net realisable value and the measurement principle — The definition of inventories and its categories","QST.IAS2.000045":"What is inventory? Net realisable value and the measurement principle — The principle: the lower of cost and net realisable value","QST.IAS2.000046":"Costs of purchase — The general rule: all costs of bringing inventory 'there and so'","QST.IAS2.000047":"Costs of purchase — The general rule: all costs of bringing inventory 'there and so'","QST.IAS2.000048":"Costs of purchase — The general rule: all costs of bringing inventory 'there and so'","QST.IAS2.000049":"Costs of purchase — The general rule: all costs of bringing inventory 'there and so'","QST.IAS2.000050":"Costs of purchase — The general rule: all costs of bringing inventory 'there and so'","QST.IAS2.000051":"Costs of purchase — The general rule: all costs of bringing inventory 'there and so'","QST.IAS2.000052":"Costs of purchase — The general rule: all costs of bringing inventory 'there and so'","QST.IAS2.000053":"Costs of purchase — The general rule: all costs of bringing inventory 'there and so'","QST.IAS2.000056":"Costs of purchase — The general rule: all costs of bringing inventory 'there and so'","QST.IAS2.000057":"Costs of purchase — The general rule: all costs of bringing inventory 'there and so'","QST.IAS2.000058":"Costs of conversion: normal capacity, low production and joint products — The rule: direct costs and a systematic allocation of overheads","QST.IAS2.000059":"Costs of conversion: normal capacity, low production and joint products — The rule: direct costs and a systematic allocation of overheads","QST.IAS2.000060":"Costs of conversion: normal capacity, low production and joint products — The rule: direct costs and a systematic allocation of overheads","QST.IAS2.000061":"Costs of conversion: normal capacity, low production and joint products — The rule: direct costs and a systematic allocation of overheads","QST.IAS2.000062":"Costs of conversion: normal capacity, low production and joint products — The rule: direct costs and a systematic allocation of overheads","QST.IAS2.000063":"Costs of conversion: normal capacity, low production and joint products — The rule: direct costs and a systematic allocation of overheads","QST.IAS2.000064":"Costs of conversion: normal capacity, low production and joint products — The rule: direct costs and a systematic allocation of overheads","QST.IAS2.000065":"Costs of conversion: normal capacity, low production and joint products — The rule: direct costs and a systematic allocation of overheads","QST.IAS2.000068":"Costs of conversion: normal capacity, low production and joint products — The rule: direct costs and a systematic allocation of overheads","QST.IAS2.000069":"Costs of conversion: normal capacity, low production and joint products — The rule: direct costs and a systematic allocation of overheads","QST.IAS2.000070":"Costs of conversion: normal capacity, low production and joint products — The rule: direct costs and a systematic allocation of overheads","QST.IAS2.000071":"Other costs, excluded costs, borrowing costs and deferred settlement — Other costs that may be included","QST.IAS2.000072":"Other costs, excluded costs, borrowing costs and deferred settlement — Other costs that may be included","QST.IAS2.000073":"Other costs, excluded costs, borrowing costs and deferred settlement — Other costs that may be included","QST.IAS2.000074":"Other costs, excluded costs, borrowing costs and deferred settlement — Other costs that may be included","QST.IAS2.000075":"Other costs, excluded costs, borrowing costs and deferred settlement — Other costs that may be included","QST.IAS2.000076":"Costs of purchase — The general rule: all costs of bringing inventory 'there and so'","QST.IAS2.000077":"Other costs, excluded costs, borrowing costs and deferred settlement — Other costs that may be included","QST.IAS2.000078":"Other costs, excluded costs, borrowing costs and deferred settlement — Other costs that may be included","QST.IAS2.000081":"Other costs, excluded costs, borrowing costs and deferred settlement — Other costs that may be included","QST.IAS2.000082":"Other costs, excluded costs, borrowing costs and deferred settlement — Other costs that may be included","QST.IAS2.000083":"Costs of conversion: normal capacity, low production and joint products — The rule: direct costs and a systematic allocation of overheads","QST.IAS2.000084":"Costs of conversion: normal capacity, low production and joint products — The rule: direct costs and a systematic allocation of overheads","QST.IAS2.000085":"Objective and scope of IAS 2 — Harvested agricultural produce: the hand-over from IAS 41 to IAS 2","QST.IAS2.000086":"Objective and scope of IAS 2 — Harvested agricultural produce: the hand-over from IAS 41 to IAS 2","QST.IAS2.000087":"Objective and scope of IAS 2 — Harvested agricultural produce: the hand-over from IAS 41 to IAS 2","QST.IAS2.000088":"Techniques for measuring cost: standard cost and the retail method — The rule: permitted if the result approximates cost","QST.IAS2.000089":"Techniques for measuring cost: standard cost and the retail method — The rule: permitted if the result approximates cost","QST.IAS2.000090":"Techniques for measuring cost: standard cost and the retail method — The rule: permitted if the result approximates cost","QST.IAS2.000091":"Techniques for measuring cost: standard cost and the retail method — The rule: permitted if the result approximates cost","QST.IAS2.000092":"Techniques for measuring cost: standard cost and the retail method — The rule: permitted if the result approximates cost","QST.IAS2.000093":"Techniques for measuring cost: standard cost and the retail method — The rule: permitted if the result approximates cost","QST.IAS2.000094":"Techniques for measuring cost: standard cost and the retail method — The rule: permitted if the result approximates cost","QST.IAS2.000095":"Techniques for measuring cost: standard cost and the retail method — The rule: permitted if the result approximates cost","QST.IAS2.000096":"Cost formulas: specific identification, FIFO and weighted average cost — Specific identification: for items that cannot replace one another","QST.IAS2.000097":"Cost formulas: specific identification, FIFO and weighted average cost — Specific identification: for items that cannot replace one another","QST.IAS2.000098":"Cost formulas: specific identification, FIFO and weighted average cost — Specific identification: for items that cannot replace one another","QST.IAS2.000099":"Cost formulas: specific identification, FIFO and weighted average cost — Specific identification: for items that cannot replace one another","QST.IAS2.000100":"Cost formulas: specific identification, FIFO and weighted average cost — Specific identification: for items that cannot replace one another","QST.IAS2.000101":"Cost formulas: specific identification, FIFO and weighted average cost — Specific identification: for items that cannot replace one another","QST.IAS2.000102":"Cost formulas: specific identification, FIFO and weighted average cost — Specific identification: for items that cannot replace one another","QST.IAS2.000103":"Cost formulas: specific identification, FIFO and weighted average cost — Specific identification: for items that cannot replace one another","QST.IAS2.000104":"Cost formulas: specific identification, FIFO and weighted average cost — Other inventories: FIFO or weighted average cost","QST.IAS2.000105":"Cost formulas: specific identification, FIFO and weighted average cost — Other inventories: FIFO or weighted average cost","QST.IAS2.000106":"Cost formulas: specific identification, FIFO and weighted average cost — Other inventories: FIFO or weighted average cost","QST.IAS2.000107":"Cost formulas: specific identification, FIFO and weighted average cost — Other inventories: FIFO or weighted average cost","QST.IAS2.000108":"Cost formulas: specific identification, FIFO and weighted average cost — Other inventories: FIFO or weighted average cost","QST.IAS2.000109":"Cost formulas: specific identification, FIFO and weighted average cost — Other inventories: FIFO or weighted average cost","QST.IAS2.000110":"Cost formulas: specific identification, FIFO and weighted average cost — Other inventories: FIFO or weighted average cost","QST.IAS2.000111":"Cost formulas: specific identification, FIFO and weighted average cost — Other inventories: FIFO or weighted average cost","QST.IAS2.000114":"Cost formulas: specific identification, FIFO and weighted average cost — Other inventories: FIFO or weighted average cost","QST.IAS2.000115":"Cost formulas: specific identification, FIFO and weighted average cost — Other inventories: FIFO or weighted average cost","QST.IAS2.000116":"Writing down to net realisable value: item by item, firm contracts and materials — Situations in which cost may not be recoverable","QST.IAS2.000117":"Writing down to net realisable value: item by item, firm contracts and materials — Situations in which cost may not be recoverable","QST.IAS2.000118":"Writing down to net realisable value: item by item, firm contracts and materials — Situations in which cost may not be recoverable","QST.IAS2.000119":"What is inventory? Net realisable value and the measurement principle — The definition of inventories and its categories","QST.IAS2.000120":"What is inventory? Net realisable value and the measurement principle — The definition of inventories and its categories","QST.IAS2.000121":"What is inventory? Net realisable value and the measurement principle — The principle: the lower of cost and net realisable value","QST.IAS2.000122":"What is inventory? Net realisable value and the measurement principle — The definition of inventories and its categories","QST.IAS2.000125":"Writing down to net realisable value: item by item, firm contracts and materials — Situations in which cost may not be recoverable","QST.IAS2.000126":"Writing down to net realisable value: item by item, firm contracts and materials — Situations in which cost may not be recoverable","QST.IAS2.000127":"Writing down to net realisable value: item by item, firm contracts and materials — Situations in which cost may not be recoverable","QST.IAS2.000129":"Writing down to net realisable value: item by item, firm contracts and materials — Inventory covered by a firm sales contract","QST.IAS2.000130":"Writing down to net realisable value: item by item, firm contracts and materials — Inventory covered by a firm sales contract","QST.IAS2.000131":"Writing down to net realisable value: item by item, firm contracts and materials — Inventory covered by a firm sales contract","QST.IAS2.000132":"Writing down to net realisable value: item by item, firm contracts and materials — Inventory covered by a firm sales contract","QST.IAS2.000133":"What is inventory? Net realisable value and the measurement principle — The principle: the lower of cost and net realisable value","QST.IAS2.000134":"Writing down to net realisable value: item by item, firm contracts and materials — Situations in which cost may not be recoverable","QST.IAS2.000135":"Writing down to net realisable value: item by item, firm contracts and materials — Inventory covered by a firm sales contract","QST.IAS2.000136":"Writing down to net realisable value: item by item, firm contracts and materials — Inventory covered by a firm sales contract","QST.IAS2.000137":"Reassessing net realisable value and reversing a write-down — The rule: reassess every period","QST.IAS2.000138":"Reassessing net realisable value and reversing a write-down — The rule: reassess every period","QST.IAS2.000139":"Reassessing net realisable value and reversing a write-down — The rule: reassess every period","QST.IAS2.000140":"Reassessing net realisable value and reversing a write-down — The rule: reassess every period","QST.IAS2.000141":"Reassessing net realisable value and reversing a write-down — The rule: reassess every period","QST.IAS2.000142":"Reassessing net realisable value and reversing a write-down — The rule: reassess every period","QST.IAS2.000143":"Reassessing net realisable value and reversing a write-down — The rule: reassess every period","QST.IAS2.000146":"Reassessing net realisable value and reversing a write-down — The rule: reassess every period","QST.IAS2.000147":"Reassessing net realisable value and reversing a write-down — The rule: reassess every period","QST.IAS2.000148":"Reassessing net realisable value and reversing a write-down — The rule: reassess every period","QST.IAS2.000149":"Recognising inventories as an expense and disclosures — The rule: sale, write-downs and losses, reversals","QST.IAS2.000150":"Recognising inventories as an expense and disclosures — The rule: sale, write-downs and losses, reversals","QST.IAS2.000151":"Recognising inventories as an expense and disclosures — The rule: sale, write-downs and losses, reversals","QST.IAS2.000152":"Recognising inventories as an expense and disclosures — The rule: sale, write-downs and losses, reversals","QST.IAS2.000153":"Recognising inventories as an expense and disclosures — The rule: sale, write-downs and losses, reversals","QST.IAS2.000154":"Recognising inventories as an expense and disclosures — The rule: sale, write-downs and losses, reversals","QST.IAS2.000159":"Recognising inventories as an expense and disclosures — The rule: sale, write-downs and losses, reversals","QST.IAS2.000160":"Recognising inventories as an expense and disclosures — The rule: sale, write-downs and losses, reversals","QST.IAS2.000161":"Recognising inventories as an expense and disclosures — What does 'cost of sales' contain?","QST.IAS2.000162":"Recognising inventories as an expense and disclosures — What does 'cost of sales' contain?","QST.IAS2.000163":"Recognising inventories as an expense and disclosures — What does 'cost of sales' contain?","QST.IAS2.000164":"Recognising inventories as an expense and disclosures — What does 'cost of sales' contain?","QST.IAS2.000165":"Recognising inventories as an expense and disclosures — What does 'cost of sales' contain?","QST.IAS2.000166":"Recognising inventories as an expense and disclosures — What does 'cost of sales' contain?","QST.IAS2.000167":"Recognising inventories as an expense and disclosures — What does 'cost of sales' contain?","QST.IAS2.000168":"Recognising inventories as an expense and disclosures — What does 'cost of sales' contain?"}}