What IAS 2?

The objective of IAS 2 is to prescribe the accounting treatment for inventories. It provides guidance for determining the cost of inventories and for subsequently recognising an expense, including any write-down to net realisable value.

Why is IAS 2 important?

IAS 2 provides guidance for determining the cost of inventories and the subsequent recognition of the cost as an expense, including any write-down to net realisable value. It also provides guidance on the cost formulas that are used to assign costs to inventories.

What is accounted for under IAS 2?

IAS 2 covers accounting for inventories. It applies to all inventories except financial instruments (covered by IAS 32 and IFRS 9) and biological assets that are in the scope of IAS 41.

Has IAS 2 been replaced?

The revised IAS 2 inventories or International Accounting Standard 2 Inventories has replaced IAS 2 inventories in 1993. These standards were applied annually from January 1, 2005. It superseded the earlier SIC-1 Consistency-Different Cost Formulas for Inventories.

How does IAS 2 define inventories?

Overview. IAS 2 defines inventories as assets which are: held for sale in the ordinary course of business, in the process of production for such sale, or. in the form of materials or supplies to be consumed in the production or rendering of services.

What is cost according to IAS?

Overview. IAS 23 Borrowing Costs requires that borrowing costs directly attributable to the acquisition, construction or production of a ‘qualifying asset’ (one that necessarily takes a substantial period of time to get ready for its intended use or sale) are included in the cost of the asset.

Why LIFO is not allowed in IAS 2?

LIFO in Accounting Standards The inventory valuation method is prohibited under IFRS and ASPE due to potential distortions on a company’s profitability and financial statements. The revision of IAS Inventories in 2003 prohibited LIFO from being used to prepare and present financial statements.

How is inventory value in IAS 2?

Under IAS 2, inventories should be measured at the lower of cost and net realisable value (IAS 2.9). Net realisable value (‘NRV’) is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale (IAS 2.6).

Why is LIFO not allowed under IAS 2?

IFRS prohibits LIFO due to potential distortions it may have on a company’s profitability and financial statements. For example, LIFO can understate a company’s earnings for the purposes of keeping taxable income low. It can also result in inventory valuations that are outdated and obsolete.

What is first in last?

Inventory management and/or accounting procedure whereby the earliest arriving goods of their kind (first in) are shipped after those that have arrived more recently (last out).

Will LIFO be banned?

IFRS prohibits LIFO due to potential distortions it may have on a company’s profitability and financial statements. For example, LIFO can understate a company’s earnings for the purposes of keeping taxable income low….Understated Net Income.

What is the I-20 form for international students?

All F and M students that study in the United States need a Form I-20, “Certificate of Eligibility for Nonimmigrant Student Status.” Once accepted into a Student and Exchange Visitor Program (SEVP)-certified school , international students will receive a Form I-20 from their designated school official (DSO) .

What do you need to know about i9 form?

I-9, Employment Eligibility Verification Use Form I-9 to verify the identity and employment authorization of individuals hired for employment in the United States. All U.S. employers must properly complete Form I-9 for each individual they hire for employment in the United States. This includes citizens and noncitizens.

Why do I need an I-20 for F and M students?

Your Form I-20 proves that you are legally enrolled in a program of study in the United States. Therefore, it may be needed when you apply for the benefits available to F and M students. If you are eligible to apply for a driver’s license or a social security number, remember to bring your Form I-20 with you. When to Get a New Form I-20

What do you need to know about Form W-2 2020?

2020 Forms W-2 Reporting of Qualified Sick Leave Wages and Qualified Family Leave Wages Paid Under P.L. 116-127 — 12-AUG-2020 Important information on employment tax withholding obligations and Form W-2 filing obligations of federal employers with employees who work in the Commonwealth of the Northern Mariana Islands and Puerto Rico