Question

Accounting standard on inventory isnot applicable to

Answer 1

valuation of Inventory comes under Accounting Standard 2..

The scope of this Standard is defined on a negative list basis..So it is easy for us to know its non applicability than its applicability..

So this Standard doesnot apply to

× work in progress arising under AS 7 i.e., construction contracts(inclusive of directly related service contracts)

×wirk in progress arising in the ordinary course of business of service providers

×shares,debentures ,other financial instrumentd held as stock in Trade

×Producers' inventory of livestock,agricultural and Forest products,mineral oils,mineral ores ,gases to the extent they are measured at net realisable value in accordance with well established practices in those industries..