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Which of the following would not be included in the definition of inventory under IFRS ?

a) Photocopy paper held for sale by an office-supply store.

b) Stereo equipment held for sale by an electronics store.

c) Used office equipment held for sale by the human relations department of a

plastics company.

d) All of the above would meet the definition.

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Question ajoutée par Moataz Elsabawy , مدير مالى , مجموعه شركات الانصار
Date de publication: 2016/10/16
yared tsegaye
par yared tsegaye , Finance manager , Shenkute Garment

c) Used office equipment held for sale by the human relations department of a

plastics company.

ASAD MEHMOOD
par ASAD MEHMOOD , Project Accountant , MRFS Group of UK

As per IFRS5 Non-current assets held for sale and discontinued operation, Assets classified held for sale must be presented separately on the face of financial position. [IFRS5.].In option C, Used office equipment was a part of PPE (IAS) and was not generated from the ordinary activities of business, which is now held for sale and therefore should not be considered as an inventory instead it should be recognize as per requirements of IFRS5.

 

Joesil Villanueva
par Joesil Villanueva , FINANCE / SALES ANALYST , ATTAR TRAVEL COMPANY

d) All of the above would meet the definition.

Because all of the above are for sale.

Muhammad Hasan Al Banna
par Muhammad Hasan Al Banna , Distribution Manager , Azad Teletalk (Authorized Distributor of bkash ltd)

Definition of inventory under IFRS, Assets which are held for sale in the ordinary course of business, are in the process of production for such sale, or in the form of materials or supplies to be consumed in the production process or in the rendering of services. So i think "D" is suitable answer. 

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