1. IAS 2, Inventories (FRS 102 s13) Flashcards
1
Q
UK GAAP Alert
A
The requirements of FRS 102 (UK GAAP) are the same as the IAS 2 requirements which are covered in the Accounting module.
2
Q
Define Inventories. (3)
A
Inventories are assets:
1. Held for sale in the ordinary course of business;
2. In the process of production for such sale; or
3. In the form of materials or supplies to be consumed in the production process or in the rendering of services.
3
Q
Give examples of a few types of inventories. (4)
A
Inventories can include:
1. Goods purchased and held for resale
2. Finished goods
3. Work in progress (part completed goods)
4. Raw materials awaiting use
