IAS 2 - Inventories
Inventory Measurement, Cost Formulas, and Net Realisable Value Under IAS 2
About This Course
Course Information
The learning outcomes from this accounting standards CPD course include: The requirements on how to account for most types of inventory. Outlining the acceptable methods of determining cost, including: Specific identification; First-in first-out (FIFO); and Weighted average cost
Certificate on Completion
This course is made up of videos, questions and additional reading materials and accounts for 2 units of CPD. One unit is the equivalent of one hour of learning. A certificate will be issued once you have completed all 2 units.
Course Sections
This course is made up of the following sections:
- IAS 2 – Inventories – Part 1 (video)
- IAS 2 – Inventories – Part 1 (quiz)
- IAS 2 – Inventories – Part 2 (video)
- IAS 2 – Inventories – Part 2 (quiz)
What You Will Learn
- Define inventories under IAS 2 and identify items excluded from the standard's scope, including construction contracts, financial instruments, and biological assets
- Apply the lower of cost and net realisable value principle to measure inventory at initial recognition and subsequent reporting dates
- Calculate the cost of inventory by combining purchase price, costs of conversion, and other costs incurred to bring items to their present location and condition
- Distinguish between the FIFO and weighted average cost flow assumptions and explain why LIFO is prohibited under IFRS
- Calculate ending inventory and cost of goods sold using both the FIFO and weighted average cost methods with worked examples
- Explain how fixed and variable production overheads are allocated to the cost of conversion under IAS 2
Who This Course Is For
- Accountants and auditors who deal with inventory measurement and valuation in IFRS reporting
- Finance professionals preparing for professional exams that test IAS 2
- Management accountants involved in production costing and inventory write-downs
Prerequisites
- Basic knowledge of financial statements and the statement of financial position
- Understanding of double-entry bookkeeping for purchases, sales, and cost of goods sold
Frequently Asked Questions
Course Details
Pricing
Invest in your professional development with flexible payment options.
Everything included in your subscription:
Ready to Start Learning?
Join thousands of finance professionals who have advanced their careers with Learnsignal CPD courses.
Enrol Now