Inventories are covered by IAS 2 Inventories, and there are three methods of valuing or measuring the cost of inventory allowed. These are
What you Need to Know About Inventories for IAS 2
Scope of IAS 2 Inventories IAS 2 applies to all inventories except: Financial instruments (IFRS 9/IAS 39) Biological assets (IAS 41) Does not apply to measurement of inventories held by: Producers of agricultural and forest products measured at NRV. Minerals and mineral products measured at NRV. Commodity brokers who measure inventory at fair value less …