Question

According to Accounting Standard 2 1
by the ICAI, inventory covers​

Answer 1

Answer:

don't know bhai . I 5hink 22nd rank

Answer 2

ANSWER :

❖ According to Indian Accounting Standard 2, Inventories are assets :-

• [a] Held for sale in the ordinary course of business,

• [b] In the process of production for such sale,

• [c] In the form of materials or supplies to be consumed in the production process or in the rendering of services.

Hence, inventories covers

• [i] Goods purchased and held for resale which also include merchandise purchased by retailers and held for resale.

• [ii] Finished goods produced, or work in progress being produced by the entity and inclue materials and supplies awaiting use in the production process.

➤ Indian Accounting Standard 2 (Ind AS 2) should be applied in accounting for all inventories except the following :-

• [1] Work in progress in the construction business, including directly related service contracts.

• [2] Work in progress of servixe business.

• [3] Shares, debentures and other financial instruments held as stock in trade.

• [4] Inventories like livestock, agricultural and forest products, mineral oils etc.

❖ Ind AS 2 is applicable to all companies irrespective to their levels, i.e., Level I, Level II and Level III.