Page 8 - PowerPoint Presentation
P. 8
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.
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