10 Questions
What is the objective of Indian Accounting Standard 2?
To provide guidance for determining the cost of inventories
Which terms are defined in Indian Accounting Standard 2?
Inventories, net realisable value, and cost formulas
To which inventories does Indian Accounting Standard 2 apply?
All inventories except financial instruments and agriculture
What does Indian Accounting Standard 2 provide guidance on?
Techniques for measurement of cost of inventories
What are the acceptable methods of determining cost as outlined in the text?
FIFO, LIFO, and specific identification method
According to the Standard, which of the following is not applicable to inventories?
Inventories held by producers of agricultural and forest products
What are considered as inventories according to the standard?
Goods purchased, goods in the process of production, and materials or supplies to be consumed in the production process or services
What does the Standard specifically exclude from its measurement requirements?
Inventories of commodity broker-traders measured at fair value less costs to sell
What are examples of biological assets that are excluded from the scope of this Standard?
Living animals or plants related to agricultural activity and agricultural produce at the point of harvest
What do commodity broker-traders principally acquire inventories for?
To generate a profit from price fluctuations in the near future
Learn about the objective, scope, and terms of Indian Accounting Standard 2: Inventories. Understand inventory cost determination, valuation methods, and the process of write-downs to net realizable value.
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