Q 8: As per AS-2, inventory covers
WIP in construction contracts
Goods purchased for resale
Livestock
Investment held as stock in trade
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This accounting standard is applicable to all companies irrespective of their level (Level I, II and III). This standard prescribes the accounting treatment for inventories and sets the guidelines to determine the value at which the inventories are carried in the financial statements.
It explains the different methods of accounting the inventory or closing stock which has a huge impact on the business revenue and the assets.
Topics discussed in this article: In this article, we cover the following topics:
Valuation of Inventories
Accounting disclosure
Comparison with ICDS
Comparison with Ind AS
Case Studies
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