Page 68 - Finac1 Test 1 slides

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.

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