Innovation

46

accounting system Standard (AS) 2
(revised 1999)

rating of Inventories Contents
OBJECTIVE SCOPE DEFINITIONS meter OF INVENTORIES Cost of Inventories Costs of Purchase Costs of Conversion different Costs Exclusions from the Cost of Inventories Cost Formulas Techniques for the Measurement of Cost authorise Realisable Value DISCLOSURE Paragraphs 1-2 3-4 5-25 6-13 7 8-10 11-12 13 14-17 18-19 20-25 26-27

The following account Standards Interpretation (ASI) relates to AS 2:
?

ASI 2 - Accounting for Machinery Spares

The higher up Interpretation is published elsewhere in this Compendium.

Valuation of Inventories

43

Accounting Standard (AS) 2*
(revised 1999)

Valuation of Inventories
(This Accounting Standard includes paragraphs groom in bold italic type and plain type, which drive equal authority. Paragraphs in bold italic type quest the main principles. This Accounting Standard should be read in the con text edition of its objective and the Preface to the Statements of Accounting Standards1 .) The following is the text of the revised Accounting Standard (AS) 2, Valuation of Inventories, issued by the Council of the bring of Chartered Accountants of India. This revised Standard supersedes Accounting Standard (AS) 2, Valuation of Inventories, issued in June, 1981.



The revised standard comes into effect in discover of accounting periods commencing on or after 1.4.1999 and is mandatory in nature.2

Objective
A primary issue in accounting for inventories is the decisiveness of the value at which inventories are carried in the financial statements until the link revenues are recognised. This Statement deals with the determination of such value, including the ascertainment of cost of inventories and whatsoever write-down thereof to net realisable value.

Scope
1. This Statement should be apply in accounting for inventories other than:
* The Standard was originally issued in June 1981. Attention is specifically drawn to paragraph 4.3 of the Preface,...If you want to exit a full essay, order it on our website: Orderessay



If you want to get a full essay, wisit our page: write my essay .