Page 3 - PowerPoint Presentation

INVENTORIES

Overview

• Inventory usually comprises a major component of

an entity’s current assets.

• It’s initial and subsequent recognition, measurement

and disclosure can have a substantial impact on the

presentation of the financial position and results of

operations of an entity.

• The standard therefore lay down requirements for:

• the determination of the carrying amount of inventory;

and

• the presentation of useful and understandable

information in respect of inventory in the financial

statements.

3