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 …

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What you need to know about Inventories for IAS 2

What are Inventories?

IAS 2 Inventories is the accounting standard governing the recognition, measurement and disclosures for inventories.


Inventories are assets:

  • held for sale in the normal course of business. (e.g. a retailer will hold stock, a manufacturer will hold finished goods)
  • in the process of production for sale (e.g. work in progress)
  • materials or supplies to be used in the production process (e.g. raw materials)

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