Inventories

Question 1

Definition of inventories

Answer 1

Assets held for sale in the ordinary course of business
In the process of production for such sale
In the form of materials or supplies to be consumed in the production process or in rendering services

Question 2

What’s the standard for inventories?

Answer 2

PAS 2

Question 3

What are the classes of inventories?

Answer 3

1. Merchandising business - merchandise inventories
2. Manufacturing business - FG, WIProcess, RM, factory supplies
3. Service business - work in progress inventories