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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Update: IAS 2 Inventories multiple choice quiz

If you’re studying IAS 2 Inventories, why not test your knowledge with our multiple choice quiz? By practicing questions you’ll improve your study and recall, ideal for people who learn best by ‘doing’ rather than just reading.

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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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