Learning outcomes

What will you learn?

The definition and classification of inventories under IFRS.

How to determine the cost of inventories, including purchase and conversion costs.

Understanding the cost formulas: FIFO and weighted average.

How to apply the lower of cost and net realizable value rule.

Recognition of inventories as an expense and treatment of write-downs and reversals.

Disclosure requirements in financial statements related to inventories.

Course content

Participants

Who is this course designed for?

Accounting students and early-career professionals looking to understand inventory accounting.

Financial and management accountants working in manufacturing or retail sectors.

Auditors and consultants analyzing inventory valuations and disclosures.

Entrepreneurs or small business owners managing stock and cost control.

Pre-requisites

Necessary Qualifications

Basic understanding of financial accounting concepts.

Familiarity with financial statements.

No prior IFRS experience required.

Course Content

What will you study?

Scope and objective of IAS 2

Definitions of inventories, net realizable value, and fair value

Measurement of inventories

Costs of purchase, conversion, and other related costs

Cost formulas: FIFO and weighted average

Write-downs to net realizable value and reversals

Recognition of inventories as an expense

Disclosure requirements under IAS 2