Accounting: How inventories will be assessed in Ind AS 2 calculations
Updated : March 26, 2019 09:10 AM IST
Inventories are valued at lower of cost and net realisable value.
A primary issue in accounting for inventories is the amount of cost to be recognised as an asset and carried forward until the related revenues are recognised.
This Standard deals with the determination of cost and its subsequent recognition as an expense, including any write-down to net realisable value.