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Should inventories be reported at their cost or at their selling prices?

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Question ajoutée par Islam Elrobe , Sales senior manager , blu
Date de publication: 2014/02/26
Rehan Qureshi
par Rehan Qureshi , Financial Consultant , Self Employeed

it depend upon the report but as per IAS the value which is less has to be used

Mohammad Tohamy Hussein Hussein
par Mohammad Tohamy Hussein Hussein , Chief Executive Officer & ERP Architect , Egyptian Software Group

Yhat depends on the purpose of the report. for example, in balance sheets inventories are reported using thier cost while in some stock evaluation reports used to atratct investors for example, inventories are reported using thier sals price.

Rakesh Chauhan
par Rakesh Chauhan , Finance Associate - North & East India , Thermo Fisher Scientific - Life Technologies

Usually it is recoded on cost price, but if you have processed in few step then process should be add on their cost

Murtuza Lalbaugwala
par Murtuza Lalbaugwala , Associate Auditor

Inventories are usually recorded in system as per cost value hence it is reflected as cost in financial statement unless the inventories are modified later for getting a finished goods. 

muhammad shuaib
par muhammad shuaib , Chief Financial Officer and Company Secretary , BHIMRA TEXTILE MILLS (PVT.) LIMITED

At cost or selling price; whichever is lower

Sameer Khan
par Sameer Khan , Financial Accountant , Centro Salama by Rotana

Inventory are usually recorded at their cost price, in all my audit experience, but as per IAS2 they could also be recorded on Net realisbale Value - NRV

MALIIK SOHAIL ABBAS
par MALIIK SOHAIL ABBAS , ACCOUNTS MANAGER , AL RAWDAH GREEN SWEET WATER

Its depend upon on report is it cost / retail based usaullu inventory shown on assets side on Historical cost prniciple

ALLAH DITTA
par ALLAH DITTA , Accountant , Master Beverages & Food Limited

According to IAS2 inventories are recorded at lower of cost or NRV.....if cost are high thn NRV thn inventories or recrded at NRV.

for.expl..a machine cost .$12

(NRV)NET Reliseable Value.$10

inventories r reported at lower mean at nrv..

Accrual concept ..asseta and income or not overstated ..so inventory is non current asset ..

 

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