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Chapter 5

Inventory

Outcome

By the end of this session you should be able to:

 record the adjustments for opening and closing inventory

 apply the principles of inventory valuation in accordance with IAS 2 Inventories

 recognise the costs that should be included in inventory

 calculate inventory cost using the first in, first out (FIFO) and average cost
(AVCO) methods

 understand and identify the impact of inventory valuation on reported profits and
assets

and answer questions relating to these areas.

The underpinning detail for this Chapter in your Notes can be found in
Chapter 6 of your Study Text

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