CA Jai Chawla

COVID - 19 INDAS 2 - INVENTORIES (Page 1) Most Recent Updates

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Meaning Non- applicability Measurement How to Identify cost?

of Inventory
An Asset
Depends on
Held for In Proces Materials Nature of Inventory
Full IndAS 2 Only Measurements Measurement of Measurement of WIP
Sale in of or Supplies
Ordinary Production to be not covered Norms of IndAS 2 Finished Goods Lower of
course Consumed not covered Not ordinarily Ordinarily
for Sale 1) Fin. Inst. except:-
of Buss. (WIP) in Production FEC* entered Cost Cost incurred Interchangable Interchangable
(F.G.) or for Physical (Incurred + Further Est.
Ü Agriculture Commodity till date) Cost to Complete
Rendering of delivery Specific Identification Historical Non-Historical
Produce Broker (-) Est. sell. Exp
Services in respect of Method Approach Approach
Ü Forest Produce Traders NRV
(Rm) inventory (Cost sheet of each &
Ü Mineral Produce
then applicable every inventory shall be
Fair Value FIFO WAC Retail Standard Cost
2) Biolog. Assets Lower of taken into consideration)
Always at less cost price

COVID - 19
*Forward Exchange NRV to Sale always OR How to Use?
Contract (FEC) How to Use? Standard price of
COST NRV
SP is to be a) Material
Purchase Price + Estimated SP adjusted with b) Labour
Conversion Cost+ Other Cost (-) Cost to Sale GP% c) O/H
are taken & they are
Estimate NRV When to Use? regularly reviewed
Prod OH Best evidence:- when there are based on revised prices
Labour
Sale event wide variety
after BS date of Products When to Use:-
with similar margin Cost records are
Fixed Variable
Measurement of
maintained properly
OH OH Raw Material & every product is
having diff profit margin
Allocation on Allocation If NRV of
Normal If NRV of
on Actual FG is higher FG is Lower
Capacity basis Capacity basis
except when than Cost
always
Actual production Measure RM at
is more than Measure Replacement Cost
Normal RM at Cost

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COVID - 19
COVID - 19