Comparison chart of ICDS II, AS-2 & IndAS-2

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... y other ICDS; c.) Shares, debentures and other financial instruments held as stock-in-trade which are dealt with by the ICDS relating to securities; d.) Producers inventories of livestock, agriculture and forest products, mineral oils, ores and gases to the extent that they are measured at net realisable value; e.) Machinery spares, which can be used only in connection with a tangible fixed asset and their use is expected to be irregular, shall be dealt with in accordance with ICDS relating to tangible fixed assets. There is no scope exemption in AS 2 for any inventories held by commodity traders. Further, AS 2 totally excludes from its scope (and not just measurement requirements) producers inventor .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... e inventory dealt with above, shall be assigned by using the First-in First-out (FIFO), or weighted average cost formula. The formula used shall reflect the fairest possible approximation to the cost incurred in bringing the items of inventory to their present location and condition. Retail method is permitted as technique for measurement of cost if it is impracticable to use FIFO or Weighted Average Cost Formula It is not expressly mandated to use the same cost formula consistently for all inventories that have a similar nature and use to the entity. The formula used should reflect the fairest possible approximation to the cost incurred in bringing the items of inventory to their present location and condit .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... nd taxes, Under ICDS, duties and taxes, even if subsequently recoverable from taxing authorities, will form part of costs of purchase, and hence, will be included in the cost of inventories. This is in line with section 145A of the Act. Whether the effect will be nullified by the accounting entries under the inclusive method depends on the view taken by the Assessing Officer. The costs of purchase consist of the purchase price including duties and taxes (other than those subsequently recoverable by the enterprise from the taxing authorities), freight inwards and other expenditure directly attributable to the acquisition. Trade discounts, rebates, duty drawbacks and other similar items are deducted in determining the .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X