CERTYNEX IFRS ACADEMY

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?

Inventories: supplies to be consumed in rendering services.

Expenses of the period of purchase, since they will never be resold to customers.

Non-current assets, since they are essential to the entity's business.

Inventories, but only if they are invoiced to customers separately from the service.