Page 4 - Finac1 Test 1 slides - 4. Inventories

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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