10 Questions
What is the primary issue in accounting for inventories?
Determining the value at which inventories are carried in the financial statements until the related revenues are recognised
What does Accounting Standard (AS) 2 deal with?
Determination of the value of inventories and any write-down to net realisable value
In which context should this Accounting Standard be read?
In the context of its objective, the Preface to the Statements of Accounting Standards, and the ‘Applicability of Accounting Standards to Various Entities’
What is excluded from the scope of this Standard?
Work in progress arising under construction contracts
What does the bold italic type in the Standard indicate?
The main principles
Which of the following is the primary issue in accounting for inventories?
Determining the value at which inventories are carried in the financial statements until the related revenues are recognised
What is the scope of Accounting Standard (AS) 2* (revised 2016)?
It should be applied in accounting for inventories other than work in progress arising under construction contracts
What does AS 2* (revised 2016) deal with?
Determination of the value of inventories and any write-down to net realisable value
What type of contracts are excluded from the scope of AS 2* (revised 2016)?
Work in progress arising under construction contracts
What should be considered in determining the value of inventories according to AS 2* (revised 2016)?
Ascertainment of cost of inventories and any write-down thereof to net realisable value
Test your knowledge of the revised 2016 Accounting Standard (AS) 2 on Valuation of Inventories with this quiz. Evaluate your understanding of the main principles and key paragraphs of the standard.
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