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    Leslie Joy Oren
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    This document discusses inventory accounting standards under PAS 2 and biological assets under PAS 41. It covers measurement of inventory at the lower of cost or net realizable value, and exclusions from cost. It also describes periodic and perpetual inventory systems and classifications of biological assets as consumable or bearer. Bearer biological assets such as bearer plants are measured at cost while agricultural produce is measured at fair value less costs to sell at harvest.

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    This document discusses inventory accounting standards under PAS 2 and biological assets under PAS 41. It covers measurement of inventory at the lower of cost or net realizable value, and exclusions from cost. It also describes periodic and perpetual inventory systems and classifications of biological assets as consumable or bearer. Bearer biological assets such as bearer plants are measured at cost while agricultural produce is measured at fair value less costs to sell at harvest.

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    Download as PPTX, PDF, TXT or read online from Scribd
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    6 views9 pages

    CFAS

    Uploaded by

    Leslie Joy Oren
    This document discusses inventory accounting standards under PAS 2 and biological assets under PAS 41. It covers measurement of inventory at the lower of cost or net realizable value, and exclusions from cost. It also describes periodic and perpetual inventory systems and classifications of biological assets as consumable or bearer. Bearer biological assets such as bearer plants are measured at cost while agricultural produce is measured at fair value less costs to sell at harvest.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    of 9

    PAS 2

    Inventories
    1. Ordinary Course of
    business
    2. LC | NRV
    3. Freight on Board (FOB)
    4. Periodic and Perpetual
    inventory system
    “Ordinary Course of business”

    1. • Raw
    Merchandise Materials
    2. • Work in
    Manufacturi Process
    ng • Work in
    3. Service Progress
    LC | NRV
    MEASUREMENT

    Cost:
    EXCLUSIONS NRV
    Purchase Costof Cost
    Conversion Cost Estimated SP-
    Selling Cost Estimated Cost to
    Other Cost Storage Cost
    Sell
    (Completed
    goods)
    FOB
    “OWNERSHIP”

    FOB
    DESTINATI
    ON

    FOB
    SHIPPIN
    G POINT
    Types of Inventory System

    Periodic Inventory Perpetual Inventory


    System System
    • Small peso • Large peso investment
    investment • “Stock cards”
    • “Physical
    Counting” at the
    end of a period
    PAS 41
    BIOLOGICAL ASSETS
    TYPES OF BIOLOGICAL ASSETS

    Consumable Biological Assets


    • Agricultural produce (at point
    of harvest)
    • To be sold as Biological asset

    Bearer Biological Assets


    • Bearer Animals
    • Bearer Plants (PPE)-Solely used
    MEASUREMENT

    Processed
    Bearer Agricultural
    Goods (PAS
    Plants Produce
    2)
    (PPE) ”At point of
    harvest”

    • Fair value
    less cost to
    sell

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