IAS 2

The International Accounting Standard 2 (IAS 2 ), entitled "Inventories" ( in the original English: "Inventories " ) is an accounting standard by the International Accounting Standards Board (IASB ), which governs the accounting treatment for inventories. The default has despite its name within the IFRS far beyond the accounting for inventories also reaching significance, as it is in many other standards refer to formulate there valuation rules.

Objective

The Standard prescribes the accounting balance sheet item inventories within current assets ( current assets ). The rules focus on the determination of the purchase price or production cost on initial recognition and subsequent measurement.

Scope

The default is grds. applies to all inventories. Does not, however IAS 2 in accordance with IAS 2.2. :

• Work in progress long-term manufacturing (IAS 11)
• Producers of agricultural and forestry products (IAS 41)

In addition, exceptions for minerals (IFRS 6) and commodity broker, which apply the retrograde method of assessing apply.

Value approach

Inventories shall be measured in accordance with IAS 2 at the lower of acquisition or production cost and net realizable value (IAS 2.9). A write-up on the historical cost addition, as introduced by the IASB in the framework of fair value accounting in subsequent standard is not required by IAS 2.

Individual assessment and collection Review

Non-replaceable Inventories are valued separately in accordance with IAS 2:23 ( principle of individual valuation ). A class rating is only permitted if it is usually replaceable items (IAS 2.25). In a class rating permissible methods are the FIFO method and the mean method. The LIFO method accounted for in the IAS in 2004 as part of the IAS carried out in 2003 " Improvement Projects".

Versions and validity in the European Union

The currently valid version of IAS 2, dated from 2003 and entered into force on 1 January 2005. This version applies to the European Commission Regulation of 29 December 2004 from 1 January 2005 and in the European Union (see also: International Accounting Standards).