Page 6 - Finac1 Test 1 slides - 4. Inventories

INVENTORIES

Outcomes

• Determine the amount of cost in respect of inventories

to be recognised as an asset and the amount carried

forward until the related revenues are recognised.

• Determine the cost of sales recognised in the

statement of profit or loss and other comprehensive

income.

• Determine any write down to net realisable value and

any reversal of the write-down.

• Use the different cost allocation techniques and cost

formulas to assign costs to inventories.

• Disclose all information in respect of inventory in the

financial statements.

6