1. IAS 2, Inventories (FRS 102 s13)

Question 1

UK GAAP Alert

Answer 1

The requirements of FRS 102 (UK GAAP) are the same as the IAS 2 requirements which are covered in the Accounting module.

Question 2

Define Inventories. (3)

Answer 2

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.

Question 3

Give examples of a few types of inventories. (4)

Answer 3

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