IAS 2 IN PRACTICE

IAS 2 in Practice is a practical field guide to applying IAS 2 Inventories in real-world accounting situations. It focuses on the decisions, calculations and professional judgements required to determine inventory cost, assess net realisable value and produce a defensible year-end inventory balance.

Rather than reproducing the Standard, this book translates IAS 2 into practical implementation steps. It takes readers through inventory recognition and measurement, cost components, FIFO and weighted average cost formulas, standard costing, net realisable value, write-downs and reversals, joint products and byproducts.

Particular attention is given to areas that frequently create difficulties in practice, including LIFO versus IFRS requirements, import duties and tariffs, abnormal waste, borrowing costs, production overheads, obsolete inventory, NRV estimation and the allocation of joint production costs.

The guide also addresses the emerging practical challenge of tariff volatility, showing how changes in import duties can affect inventory cost while distinguishing cost measurement from the separate NRV assessment.

Through realistic examples, practical workshops, decision checkpoints and working templates, readers learn how to build a cost-formula decision tree, inventory cost register, NRV testing file, write-down and reversal documentation, and audit-ready inventory evidence.

Designed for accountants, auditors, financial controllers, CFOs, finance managers, inventory and costing professionals, consultants, academics and advanced accounting students, this guide provides a compact route from inventory costing to a defensible IAS 2 valuation.