Objective, Scope & Definition

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..... nce on the cost formulas that are used to assign costs to inventories. This standard is very important as valuation of inventory impacts both P L as well as Balance Sheet i.e., if closing stock is overvalued/undervalued, it impacts CY profits as well as asset value in the Balance Sheet. Scope This Standard applies to all inventories, except: Financial Instruments (If any contr .....

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..... period of the change. Commodity broker-traders who measure their inventories at fair value less costs to sell. When such inventories are measured at fair value less costs to sell, changes in fair value less costs to sell are recognised in profit or loss in the period of the change. Notes - If inventories are recognized at net realizable, the profit or loss on those are recognized i .....

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..... Definitions The following terms are used in this Standard with the meanings specified: Inventories are assets : held for sale in the ordinary course of business; in the process of production for such sale; or in the form of materials or supplies to be consumed in the production process or in the rendering of services. Net realisable value is the estimated selling pr .....

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