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INVENTORIES

Definition

• Inventory is assets:

• held for sale in the ordinary course of business

• Finished goods, merchandise

• in the process of production for sale

• Raw materials, work in progress

• material consumed in production process

• Spare parts, consumables etc.

• Includes rental assets subsequently sold in the

ordinary course of business (IAS 16.68A)

• E.g. Rental vehicles

• Will always be current assets in terms of IAS 1.66

• Asset realised in normal operating cycle

• Held for the purpose of trading

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