Page 66 - Finac1 Test 1 slides

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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